TaxTMI 
TaxTMI 
2002 (2) TMI 4
X X X X Extracts X X X X
X X X X Extracts X X X X
....ties have also been imposed on the second appellant, Mr. Pradeep Kumar Arya who is director of M/s. Prabhat Zarda Factory. 2. The appellants, M/s. Prabhat Zarda Factory, are engaged in the manufacture of tobacco product. The said appellants entered into an agreement dated 25-10-89 with M/s. Ratna Zarda Company (hereinafter referred to as RZC), appointing the said M/s. RZC as an agent of M/s. Prabhat Zarda Factory. As per the terms of the said agreement, M/s. RZC was appointed as agent for the purpose of marketing the appellants' product and for the function of booking of orders, managing, supervising and developing of the market. The said M/s. RZC was also to act as the appellants' attorney to demand, to sue, to recover, to receive and to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Service Tax does not arise. Initially, they also took a stand that it is the receiver of the commission who was to pay Service Tax on the quantum of commission received by him and they cannot be made liable to pay the same. However, during the course of personal hearing, they contended that after the amendments in Service Tax Rules through the Finance Bill, they should have been issued a fresh show cause notice. During the course of personal hearing before Commissioner they filed figures of the value of sales effected through their agent and the amount of commission paid by them during the period 1-11-98 to 31-8-99. 5. After considering the submissions made by the appellants, the Commissioner did not find favour with the same and confir....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he receipt and despatch of goods and the stock available at the warehouse and preparing invoices on behalf of the Principal. He submits that inasmuch as M/s. RZC is not doing any of the activities enumerated in the said Trade Notice, they cannot be called as clearing and forwarding agent and the commission so earned by them cannot be made liable to Service Tax and the appellants cannot be held guilty of non-payment of Service Tax. 7. Shri Narasimhan also urged that after amendment in the Service Tax Rules through the Finance Bill, 2000, the Revenue authorities should have issued a fresh show cause notice inasmuch as the earlier show cause notice dated 1-2-99 had become redundant. 8. We have heard Shri A.K. Pundit, ld. JDR for the Revenue ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....by the use of the expression 'normally'. As such, it is clear that the activities given in the said Trade Notice are not exhaustive but are inclusive in nature and describes the jobs to be normally undertaken by the clearing and forwarding agent. As per the definition of clearing and forwarding agent, he is a person who is engaged in providing 'any' service, either directly or 'indirectly'connected with clearing and forwarding operations in 'any'manner to any other person (Emphasis provided). The use of expression 'any'and 'indirectly'in the said definition of clearing and forwarding agent, is indicative of the fact that the scope of the services to be provided by clearing and forwarding agent is quite wide. He is not only the person who is....