2014 (8) TMI 26

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....ls Ltd. 2. Revenue took a view that appellant is nothing but a C&F agent and therefore was liable to pay service tax on the amounts received for the services provided by them to M/s. Paras Pharmaceuticals Ltd. and on this ground proceedings were initiated proposing to demand service tax amounting to Rs. 1,00,53,618/- with interest for the period from 1-9-1999 to 31-3-2002 and proposing to impose penalties under various sections of Finance Act, 1994. 3. The proceedings initiated thereafter by issue of a show cause notice has culminated in the impugned order wherein the service tax liability has been confirmed with interest and penalties have been imposed under various sections of Finance Act, 1994. 4. Heard both the sides i....

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....f the manufacturer; (j)      required to study and give report on the ORG data; (k)     required to make recommendations to the manufacturer as to the adoption of various strategies for the promotion of the sales of the products of the manufacturer including the introduction of the new and/ or improved products in the market; (l)      Generally, to take all necessary care in connection with the sale of the products of the manufacturer to their principal. 6. It was submitted by the ld. counsel that during the material period appellant had not undertaken handling of goods in any manner whatsoever. Appellants were merely doing promotion/marketing of the goods and co....

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....uld appoint C&F agents and further they were also expected to supervise the work of C&F agent and these factors would clearly show that the appellant is covered by the definition. He relies upon the decision of the Hon'ble High Court of Karnataka in the case of Mahaveer Generics - 2010 (17) S.T.R 225 (Kar.). On the other hand ld. counsel submits that in the case of Larsen & Toubro Ltd. - 2006 (3) S.T.R. 321 (Tri.-LB), it was held that mere booking orders for the principal by an agent on commission basis cannot be taxed under C&F agent service. He draws our attention to the purchase orders placed by them wherein they have shown the name of the party, quantity ordered and to whom and through whom the goods are to be delivered. He submits that....