TaxTMI 
TaxTMI 
2010 (3) TMI 333
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Branch, Bangalore in Final Order No. 388/2005 dated 25-2-005 [2006 (3) S.T.R. 597 (Tri. - Bang.)]. 3. The facts leading to this case are as hereunder: The respondent-assessee Company is an Agent for M/s. IPCL. The respondent-assessee contended that it is acting as an agent for IPCL as a Del Credere Agent and not C&F Agent in order to pay the service tax. The case of the assessee for the period 1-3-2003 to 11-10-2003 was not accepted. The Asst. Commissioner passed an order calling upon the assessee to pay the service tax and he also levied the penalty. Being aggrieved by the order passed by the Asst. Commissioner, the assesse filed an appeal before the Commissioner....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tified in levying the service tax on the assessee. 6. Per contra, the learned counsel for the assessee, taking us through the agreement entered into between IPCL and the assessee contends that service rendered by the assessee falls under the category of Del Credere Agent an therefore the assessee is not liable to pay the tax. He further contends that amendment to Finance Act was brought in the year 2005 which has come into force with effect from 16-6-2005, wherein the service rendered by a Del Credere Agent has also been included under business auxiliary service. In view of the amendment which has come into force with effect from 16-6-2005 holding a Del Credere Agent is liable to be taxed under the Service Tax Act. Therefore, taking us t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... facts of this case, it would be appropriate for us to quote the definition of C&F Agent. Under the Finance Act, 1994, Section 65(25) deals with the definition of clearing and forwarding agent as under: "(25) 'clearing and forwarding agent' means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operations in any manner to any other person and includes a consignment agent." 9. It would also be relevant to note the amendment brought into effect 16-6-2005 as 65(25). Under the amended provision of 2005 clause (19) deals with the business auxiliary service which includes commission agent: (19) 'business auxiliary service' means any service in re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s; or (ii) collects payment of sale price of such goods or services; or (iii) guarantees for collection or payment for such goods or services; or (iv) undertakes any activities relating to such sale or purchase of such goods or services; Whereunder the service rendered by a Del Credere Agent has been brought into service Tax. 10. Combined reading of the definition of C&F agent under the Finance Act under Section 65(25) and the meaning of Del Credere Agent and the amendment brought into in the year 2005, whereunder Del Credere Agent is also included would clearly establishes that prior to the amendment, the service rendered by a Del Credere Agent had been excluded from service tax. Therefore we are of the view that since the r....