Order booking on commission basis is not clearing and forwarding service where the broker never handles goods.

Mere procurement or booking of orders on commission basis, without handling goods at any stage, does not constitute clearing and forwarding agent service for service tax purposes. Applying this principle, the Tribunal held that the broker's activity was confined to order booking and commission earning, and did not satisfy the description of clearing and forwarding operations. The service was therefore not classifiable as clearing and forwarding agent service, the impugned demand could not be sustained, and the demand was set aside.

---

---

Issues: Whether the activity of booking orders by a broker on behalf of the assessee could be classified as clearing and forwarding agent services for service tax purposes.

Analysis: The broker was engaged only in procuring orders on commission basis and did not handle the goods at any stage. On the facts, such activity did not answer the description of clearing and forwarding agent services. The Tribunal applied the ratio of the cited decisions holding that mere booking of orders does not amount to clearing and forwarding activity.

Conclusion: The service involved was not liable to be classified as clearing and forwarding agent services. The impugned demand could not be sustained.

Final Conclusion: The demand was set aside and the appeal was allowed.

Ratio Decidendi: Mere procurement or booking of orders on commission basis, without handling the goods, does not constitute clearing and forwarding agent services.

---