Service Tax Demand Overturned for Clearing Agents Procuring Orders on Commission Basis

The tribunal in New Delhi overturned a decision confirming service tax demand on appellants acting as Clearing and Forwarding Agents. It ruled that procuring orders on commission basis does not classify one as a Clearing and Forwarding Agent. The impugned orders were set aside, and the appeals were allowed.

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The appellate tribunal in New Delhi considered two cases together where service tax demand on appellants as Clearing and Forwarding Agents was confirmed. The tribunal ruled that procuring orders on commission basis does not make one a Clearing and Forwarding Agent, overturning a previous decision. The impugned orders were set aside, and appeals were allowed.

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