TaxTMI 
TaxTMI 
2013 (12) TMI 1023
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the appellants herein. The appeals were preferred against the order-in-original dated 28.7.2006 passed by the Joint Commissioner of Service Tax, New Delhi. The primary authority confirmed service tax demand of Rs.8,30,371/- (against the appellant company) for having provided Clearing and Forwarding Agent service during 1.9.99 to 30.9.04, besides interest and penalties under Sections 76 and 78 of the Act. Penalty of Rs.5000/- was imposed, on the appellant in the connected appeal. 2. Proceedings were initiated on the ground that the appellant company had provided the taxable Clearing and Forwarding Agency service in respect of ship0ment of coal to various thermal power plants such as the Indraprastha Power Generation Co. Ltd., Haryana Pow....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rvices provided and held that the several services provided were isolated services; the several services provided by the appellant are part of a chain of activities facilitating transport of coal from the collieries to premises of the user companies; these services were directly linked with Clearing and Forwarding of the coal by the appellant company; and these activities, in the light of the letter dated 10.12.2003, fall within the fold of Clearing and Forwarding agency service. 5. The meaning and contours of the taxable 'Clearing and Forwarding Agency' service was considered in several decisions of this Tribunal and High Court. The expression 'Clearing and Forwarding Agency' is defined in Section 65 (25) of the Finance Act, 1994 as mea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(India) Ltd., the Tribunal rejected the appeal by Coal Handler Pvt. Ltd. 7. 'Clearing and Forwarding' was introduced as a taxable service with effect from 16.7.97. TRU Circular, dated 11.7.97 issued by the Board clarified that the scope of this service to be introduced comprised certain enumerated functions. These functions, according to this Circular are : (a) Receiving goods from the factories or premises of the principal or his agents; (b) Warehousing these goods; (c ) Receiving dispatch orders from the principal; (d) Arranging dispatch of goods as per the directions of the principal by engaging transport on his own or through the authorized transporters of the principal; (e) Maintaining records of the receipt and dispa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding of coal falls outside the Clearing and Forwarding Agent service. The decision pointed out that the taxable 'Clearing and Forwarding Agent' service is where the activity includes inter alia receiving goods from the factory or premises of principal or his agents; warehousing these goods; receiving orders from the principal; arranging dispatch of goods as per directions of the principal by engaging transport on his own or through the authorised transporters of the principal; and maintaining records of the receipt and dispatch of goods and the stock available at the warehouse. The Court further held that the expression 'Clearing and Forwarding Agent' is conjunctive and not disjunctive. Only clearing activities provided would not attract se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tside the ambit of Clearing and Forwarding agent service. 13. The letter dated 10.12.2003 appears to have been in response to representations made by three companies. The representationists appeared to have sought advice/clarifications. Para 1 of this letter (addressed by the Under Secretary to the Government of India to the representationists) states that in response to representations received by the Board, as to whether the service of coal merchants would be covered under the category of clearing and forwarding agency for applicability of service tax and in the context of the fact that coal merchants primarily act as agent of buyer and carry out such jobs/assignments as asked for by the respective consumer/buyers, the Board had examin....