2012 (9) TMI 23

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....ri Mayank Garg, Adv. For Respondent: Shri K P Singh, AR Per: Mathew John: The appellants were acting as a clearing and forwarding agent to M/s Chambal Fertilizers & Chemicals Ltd. They were registered with Service Tax Department as clearing and forwarding agent were paying service tax on commission received for such activity. They had a separate contract with M/s Chambal Fertilizers & Che....

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....otice to the appellant and after due proceedings he confirmed the demand of Rs. 2,63,478/- along with interest and penalties under Section 76 and 78 of the Finance Act 1994. Aggrieved by the order of the Commissioner, the appellants have filed this appeal 3. The counsel for the appellant submits that they were basically providing service of clearing and forwarding agents and for the commission ....

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....sion of the Tribunal in K.D, Sales Corporation Vs. CCE - 2007 (6) STR 418 (Tri.-Bang.). 4. The Counsel also submits that the essential nature of the service which they were rendering to M/s Chambal Fertilizers and Chemicals Ltd. was not that of "Storage and Warehousing", but was that of "Clearing and Forwarding". Therefore the proposal that their service should be classifiable under "Storage an....

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....nses extended period of time could not have been issued for demanding such tax. He pleads that the demand is not maintainable for that reason also. 6. The ld. A.R. for Revenue submits that the service of "Clearing and Forwarding" could not have been done without a storage space. So the cost of storage space formed integral part of the value of service provided. Further he argues that the appell....