2006 (10) TMI 427

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....emsp;The appellants are operating as 'Octroi Agents' and had applied for registration under the category of "Business Support Service." They were served with show cause notices contending that the services rendered by them were classifiable under sub-clause (j) of clause 105 read with clause 25 of Section 65 of Finance Act, 1994. After considering their written submission and hearing them, the lower authority has passed the impugned orders. 3. It is contended in the appeal that - (i)      The appellants render the services of filling up necessary forms for valuation of goods, claiming applicable concessions, making Octroi payments and completing other legal formalities. (ii)    The appel....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....006 (2) S.T.R. 584 (Tri.) = 2002 (145) E.L.T. 222 (Tri.-Kol.) which was followed by the lower authority has been overruled by the Larger Bench of the Tribunal in Larsen & Toubro Ltd. v. CCE - 2006 (3) S.T.R. 321 (Tri. - LB) = 2006 (4) STT 231. 5. I have gone through the case records and considered the averments made in the appeal. The only short question involved in the appeal is whether the services rendered by the appellants are covered by the entry of "Clearing & Forwarding Agent" or by the entry of Business Support Service. 6. The tax on Clearing and Forwarding Agents was introduced by Section 88 of the Finance Act, 1997. The category of service is defined as any person who is engaged in providing any service, either dir....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 20-2-2002 held that - "We find that Board vide Circular dt. 20-2-2002 clarified the position regarding the Service tax imposed on C & F Agents. In this circular it is clarified that C & F Agents .....store them and then forward the goods according to the instructions of the principal owner." 8. As the appellants are not engaged in receiving, storing and forwarding of the goods, they cannot be called clearing and forwarding agents as per CBEC instructions. The lower authority had followed the CESTAT (Kol.) decision in Prabhat Zarda Factory (India) Ltd. v. CCE, Patna - 2006 (2) S.T.R. 584 (Tribunal) = 2002 (145) E.L.T. 222 (Tribunal) in which it had been held that 'the service has to be relatable to the clearing and forwarding ope....