2011 (2) TMI 528

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.... JJ. REPRESENTED BY : Shri S. Yadav and Ms. Sukriti Das, Advocates, for the Appellant. Shri Sonal Bajaj, SDR, for the Respondent. [Order per : Ashok Jindal, Member (J)]. - These appeals have been filed by the appellants against order of service tax demand under the category of "Clearing & Forwarding Agent" for the period prior to April, 2003. 2. The facts of the case are that t....

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....g buyers. For that activity they are receiving commission from their principals. It is not the case of the appellants that they are supplying goods to the buyers at the direction of their principals. Hence, they are not liable to pay service tax under the category of clearing and forwarding agents prior to 1-4-2003. From 1-4-2003 they are covered under the category of "Business Auxiliary Services"....

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....also perused the agreement produced before us. After going through the agreement we find that the appellants are agents of their principals and engaged in the activity of promoting sale of their principals by identifying buyers. Hence, activity undertaken by the appellants is not covered under the category of "Clearing & Forwarding Agent" during the impugned period. Although the appellants are cov....

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....ased on the quantum of such sale or purchase. It may be noticed that the exemption under this notification is for a commission agent while the services of a consignment agent remain taxable under the category of Clearing and Forwarding services. It may be appreciated that the nature of service provided by a Consignment agent is different than that provided by a commission agent. A consignment agen....