TaxTMI 
TaxTMI 
2011 (5) TMI 225
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....nt's service had become taxable under Chapter V of the Finance Act, 1994 with effect from 16-7-1997. The appellant got themselves registered with the department for payment of Service Tax on the service of C & F Agent and obtained a certificate of registration on 7-8-2000. Subsequently, the appellant is said to have obtained legal advice to the effect that the activities undertaken by them under the agreement dated 1-4-1999 entered into with M/s. Cipla Ltd. (hereinafter referred to as Cipla) would not come within the ambit of "Clearing and Forwarding Agent's service" defined under section 65 of the Finance Act, 1994. The appellant, therefore, applied to the Deputy Commissioner of Central Excise, Service Tax Cell, Bangalore, for acce....
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.... used in the recitals of the agreement, the question to be considered is whether the appellant was actually engaged in providing any service connected with clearing and forwarding operations in any manner. It was claimed that the appellant's services were not so connected directly or indirectly. In the circumstances, according to the counsel, the appellant cannot be compelled to remain registered with the department as C & F Agent. It was also pointed out that no show-cause notice had been issued by the department for recovery of Service Tax from the appellant under the head "C & F Agent's service" for the material period. On the other hand, the department has accepted the Service Tax payments made by the appellant under head "stora....
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....on in CCE v. Mahaveer Generics [2010] 24 STT 545 (Kar.). In the cited case, the Hon'ble High Court found that Cipla had appointed the assessee as consignment agent and that the latter had stored, cleared and forwarded the goods of Cipla to stockists and dealers. The Hon'ble High Court held that these operations were in the nature of "clearing and forwarding" as defined under section 65 of Finance Act, 1994. The Hon'ble High Court further observed that the word 'includes' mentioned in the definition of 'clearing and forwarding agent' indicated that the legislature in its wisdom desired to give an extended and enlarged meaning to the expression. The learned JCDR also supplied a comparative statement as follows: ....
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....ted that the agreement between Cipla and the appellant required to be construed in the same way the agreement between Cipla and Mahaveer Generics (supra) was interpreted by the Hon'ble High Court. The learned JCDR also relied on the Hon'ble High Court's judgment dated 8-4-2010 in CST v. Sangam Investments [2010] 27 STT 429 (Kar.) wherein the decision in the case of Mahaveer Generics (supra) was followed. He also referred to the Tribunal's Larger Bench decision in the case of Medpro Pharma (P.) Ltd. v. CCE [2006] 4 STT 341 (New Delhi - CESTAT) wherein it was held that clearing and forwarding operations could not be dissected into clearing and forwarding as they fell in the common category. 6. We have given careful consider....
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....he premises at 75, Bannerghatta Road, N.S. Playa, Bangalore - 560 076 and forward them in such lots and in such manner to parties and destination within the country as may be directed by Cipla from time to time." [Emphasis supplied] It was argued by the learned Counsel that the expression "to receive, store and distribute" could not mean "to clear". This argument is not acceptable as it is contrary to the intention of the contracting parties. Considering the intention of the contracting parties as reflected in the aforesaid recitals of the agreement, we would hold that the expression "to receive, store and distribute ............. and forward" appearing in Clause-1 should be so construed as to mean "to handle, clear and forward" as inten....