Order booking on commission basis is not Clearing and Forwarding Agent service when no goods handling or forwarding functions are performed.

Order booking by a broker on behalf of the assessee was held not to constitute Clearing and Forwarding Agent services for service tax purposes. The activity was limited to procuring and booking orders on commission basis; the broker did not handle goods or perform functions characteristic of a clearing and forwarding agent. Relying on Tribunal decisions, mere order booking was treated as outside the taxable scope of C&F services, so the service tax demand could not be sustained and the impugned order was set aside.

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Issues: Whether the activity of booking orders by a broker on behalf of the assessee could be treated as Clearing and Forwarding Agent services for the purpose of service tax.

Analysis: The activity in question was confined to procuring and booking orders for the assessee. The broker did not handle the goods at any stage and did not perform functions characteristic of a clearing and forwarding agent. In view of the cited Tribunal decisions, mere order booking on commission basis does not fall within the ambit of Clearing and Forwarding Agent services.

Conclusion: The activity was not taxable as Clearing and Forwarding Agent services, and the demand could not be sustained. The appeal was allowed and the impugned order was set aside.

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