TaxTMI 
TaxTMI 
2008 (1) TMI 128
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....ssued and confirmed along with like-sum as penalty besides penalties under various Sections of Finance Act, 1994. The appellant contended that they were not carrying on the activity of Consignment Agent or that of Clearing and Forwarding Agent. They were in fact receiving the goods from M/s. ITC Ltd. by invoices. They maintain their own books of accounts and they were independent dealer registered under the Sales Tax Act. They were selling the goods at the rates fixed by the M/s. ITC Ltd and were getting their commission and therefore, their activity is not that of selling the goods from premises and delivering it to the consignor, as that is a requirement for bringing them under the Consignment Agent. The goods were lifted from M/s. ITC Lt....
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....e category of purchasers of goods and the Sale of Goods Act would apply and as such Sales Tax was being collected on that account. Their pleas have been negatived on the basis of the definition of Black's Laws Dictionary of Consignment Sale. The Commissioner has taken a different view that they would come within the ambit of Clearing and Forwarding Agent. This has been challenged by the appellants. 3. The learned JDR relied on the few rulings, which are challenged by the learned Counsel by relying on the ruling of the Ahmedabad Bench in the case of CCE Vs. Parekh Apparels dated 25.10.2007 [2008 (9) S.T.R. 87 (Tribunal)] wherein in an identical facts and circumstances, the appeal of the Revenue was dismissed. The Respondents therein h....
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.... Notice No.59/99 dated 4.10.99 which we would like to reproduce below: Normally there is a contract between the principal and the clearing and forwarding agent detailing the terms and conditions and also indicating the commission or remuneration to which the clearing and forwarding agent is entitled. A clearing and forwarding agent normally undertakes the following activities- 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 the directions of the principal by engaging transport on his own or through the authorized transporters of the principal, e) Maintaining records of the....
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.... The learned JDR again reiterated his plea that the appellants have to be treated as Clearing and Forwarding Agent or Consignment Agent in terms of the agreement entered into with the ITC Ltd. He relies on the following judgments which are as follows. 5.1 In the case Vijay Enterprises Vs. CCE, Belgaum - 2007 (7) STR 339 (Tribunal.-Bang.), the question of refund was considered in respect of C & F Agent and refund was rejected. 5.2 In the case of CCE, Chandigarh Vs. ADH Agency - 2007 (7) STR 660 (Tribunal.-Del.), the respondent was a consignment stockist. He was concerned with safe delivery of goods and he was not selling the goods. Therefore, this judgment is distinguishable. 5.3 In the case of CCE, Jaipur Vs. Chopra Brothers - 2005....