Order procurement commission agents fall outside clearing and forwarding service tax liability, following the overruled prior view.

A commission agent engaged only in procuring orders on commission basis is not covered by the taxable category of clearing and forwarding agent for service tax purposes. The Tribunal noted that the demand rested on an earlier view that had already been overruled by a Larger Bench, so that interpretation could not sustain the levy. On the applicable legal position, mere order procurement did not amount to clearing and forwarding activity. The demand was therefore unsustainable, the impugned orders were set aside, and the assessee was granted complete relief.

---

---

Issues: Whether a commission agent engaged only in procurement of orders falls within the scope of clearing and forwarding agent service for service tax purposes.

Analysis: The impugned demand was founded on an earlier Tribunal decision, but that view had been overruled by the Larger Bench. The applicable legal position was that a person engaged merely in procuring orders on commission basis is not covered by the taxable category of clearing and forwarding agent.

Conclusion: The demand could not be sustained; the impugned orders were set aside and the appeals were allowed.

Final Conclusion: The appellant was held not liable under the claimed service category, resulting in complete relief.

Ratio Decidendi: A commission agent who only procures orders on commission basis is not a clearing and forwarding agent for service tax purposes.

---