2007 (2) TMI 85

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....mand on this count is about Rs. 4.5 lakhs. 2. Heard both sides and perused the record. 3. The contention of the appellant was that it was a mere commission agent and it rendered no service in relation to clearing and forwarding of goods. This contention was made before the lower authority and it was held in the impugned order that the services of attending tender, procurement of order etc. would fall in the category of clearing and forwarding agent. While passing that order, the Commissioner was going by an order of this Tribunal in the case of Prabhat Zarda Factory - 2006 (2) S.T.R. 584 (Tri.) = 2002 (145) E.L.T. 222 (Tri.). In regard to real estate agency, the submission was that the appellant had only taken the commission by obtain....

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....supply against tenders, inspection of goods and collection of payments. The contract of the appellant has generally concluded even before appropriation of goods to the contract i.e. it was generally the duty of the contractee concerned to deal with the departments on their own after the orders 'had materialized. They were themselves concerned with supply against tenders, inspections of goods, collection of payments and warehousing/transportation of goods. Therefore, the appellant was neither directly or indirectly concerned with handling of goods. The contract of the appellant with the contractee was a divisible contract and the same materialized and concluded even before goods came into existence after their appropriation. Therefore, d....

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....ind any mention in these contracts or on the record that the appellant was concerned on engaged for clearing and forwarding goods. It is well settled (Larger Bench judgment) that unless the clearing and forwarding of goods is involved, levy of. service tax as clearing and forwarding agent would not be attracted. Since the record does not disclose such involvement in any case, we are of the opinion that the appeal is to be allowed on this issue. We also do not consider it necessary to remand the case for fresh proceedings inasmuch as even the contract referred to by the id. DR speaks of only "execution of orders". Execution of orders is an entirely different activity from the clearing and forwarding of goods. The statement in Para 3 in the a....