AI Drafter 
TaxTMI 
TaxTMI 
2014 (12) TMI 242
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....ith the department for Service Tax purposes under the category of "Goods Transport Agency", "Business Auxiliary" and "Clearing & Forwarding" services. The appellant entered into a contract with M/s. Grasim Industries Ltd., Nagda, for rendering the composite service of lifting, transportation and supervision of proper beneficiation of coal from the premises of M/s. BLA Industries Pvt. Ltd., Gotatoria to the premises of their client at Nagda. They classified the said services under GTA service and availed 75% abatement on the total value and discharged Service Tax on the balance 25%. The department was of the view that inasmuch as the service rendered is a composite service which includes supervision of proper quality of beneficiation of coal....
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....o late fee for late filing of the return under Rule 7C of Service Tax Rules, 1994. The above demands were confirmed vide the impugned order classifying the composite service under "clearing and forwarding agency service" and confirming the demand for Rs. 4,47,88,078/- along with interest thereon. In respect of GTA service, the demand of Rs. 94,74,010/- was confirmed and the amount of Rs. 77,84,080/- was appropriated along with interest of Rs. 17,15,168/-. A penalty of Rs. 5,42,63,088/- was imposed under Section 78 of the Finance Act, 1994, apart from the penalty under Section 76 for default of payment of Service Tax for the period prior to 10-5-2008. A late fee @ Rs. 2,000/- per Service Tax return was also confirmed under Rule 7C of the Ser....
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.... 3.1 The ld. counsel also submits that bulk of the cost is on account of transportation which accounts for about 54% of the total consideration received. As per the Board's Circular No. B-43/7/97-TRU, dated 11-7-1997, at the time of introduction of "clearing and forwarding agency service", it was clarified that clearing and forwarding agents normally undertakes receipt of the goods from the factory or premises of the principal, receiving despatch orders from the principal, arranging for despatch of the goods, maintaining records of receipt and despatch and preparing invoices on behalf of the principal. They have not undertaken any of these activities and therefore, in terms of the Board circular referred to supra their activity is not....
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....stries Ltd. The responsibility of the appellant includes the supervision of proper beneficiation of coal so as to ensure quality of the coal, taking delivery of beneficiated coal from BLA industries and timely transport of the same through trucks to the plant of M/s. Grasim Industries Ltd., Nagda. For these services a lump sum amount of Rs. 965/- per MT is paid to the appellants which includes transportation charges, loading charges, etc. Thus it is seen that the contract is a composite one. When the service rendered is a composite one, Section 65A of the Finance Act, 1994 comes into play and the said Section reads as follows :- "(1) For the purposes of this Chapter, classification of taxable services shall be determined acco....
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....ice is prima facie not correct, in view of the Board's Circular No. B-43/7/97-TRU, dated 11-7-1997. In the said circular it has been clarified that a clearing and forwarding agent normally undertakes the following : "(a) Receiving the 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 directions of the principal by engaging transport on his own or through the authorised transporters of the principal; (e) Maintaining records of the receipt and dispatch of goods and the stock available at....