TaxTMI 
TaxTMI 
2013 (8) TMI 566
X X X X Extracts X X X X
X X X X Extracts X X X X
....rketing of goods produced by the latter by obtaining orders and also ensuring that the goods are sold at the terms and discounts as specified by VML. For the services rendered, they were getting a commission from M/s VML. The department was of the view that the services rendered by the appellant is classifiable under the category of 'Clearing and Forwarding Services' and accordingly, a Service Tax demand of Rs.61,16,009/- was confirmed for the period October, 1998 to September, 2000 along with interest thereon. Penalties under Section 76, 77 and 78 of the Finance Act, 1994 were also imposed on the appellant. The appellant preferred an appeal before the lower appellate authority, who vide the impugned order dismissed their appeal and hence, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....able at the warehouse; (f) Preparing invoices on behalf of the principal." They have undertaken none of the above activities and, therefore, the services rendered by them do not come under the category of 'Clearing and Forwarding Services'. 3.1 The learned Counsel further submits that both the adjudicating and appellate authority while classifying the services under the category of Clearing & Forwarding Agency services, have relied on the decision of the Tribunal in the case of M/s Prabhat Zarda Factory (India) Ltd. Vs. Commissioner of Central Excise - 2002 (145) ELT 222 (Tri-Kol) while concluding that the services rendered by the appellant was that of clearing & forwarding agency. However, the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....services provided or to be provided to any person by a clearing and forwarding agent in relation to clearing and forwarding operations in any manner." As per Section 65(25) 'Clearing & Forwarding Agent' means any person who is engaged in providing any services directly or indirectly, connected with Clearing & Forwarding in any manner to any person and includes a consignment agent. 5.2 The CBE&C vide Circular dated July, 1997 (cited supra) had clarified the scope of the services undertaken by the clearing & forwarding agent. The clarification provided clearly says that such agent should receive the goods, warehouse the goods and arrange for the dispatch of the goods as per directions of principal and also maintain a record of receipt and d....