2017 (1) TMI 39

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....ransfer basis and sell the goods on negotiated price to various customers according to market conditions and competition, giving variable discounts to customers, communicate the details of sales made to B.A.L., follow with the customers for payment and complaints. The service tax Department observed that the appellant is a consignment agent for the principal M/s B.A.L. and is providing C&F services. The show cause proceedings initiated against the appellant culminated in the adjudication order dated 30.03.2010, wherein the ld. Commissioner of Service Tax, Delhi has confirmed service tax demand of Rs. 18,46,743/- and imposed penalties under Section 77 and 78 of the Finance Act, 1994 on the appellant. The reason assigned for confirmation of t....

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....nt, the ld. Advocate has referred to the judgment of Hon'ble Supreme Court in the case of Coal Handlers Pvt. Ltd. - Vs. - Commissioner of Central Excise, Kolkata, reported in 2015 (38) S.T.R. 897 (S.C.), wherein the role and activities performed by a C & F agent has been discussed. 3. On the other hand, Shri Amresh Jain, ld. A.R. appearing for the revenue reiterated the findings recorded in the impugned order and further submitted that the activities undertaken by the appellant pursuant to the agreement entered with M/S B.A.L. fall under the scope and purview of C&F agent service, and as such, demand of service tax and imposition of penalty by the adjudicating authority are proper and justified. 4. Heard both sides and perused the rec....

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....the present case) and thereafter dispatching/forwarding the said coal to different destinations as per the instructions of the principal. In the process, it may include warehousing of the goods so cleared, receiving dispatch orders from the principal, arranging dispatch of the goods as per the instructions of the principal by engaging transport on his own or through the transporters of the principal, maintaining records of the receipt and dispatch of the goods and the stock available on the warehouses and preparing invoices on behalf of the principal " 7. The scope of work of the appellant pursuant to the terms and conditions contained in clause 4 of the agreement entered with M/s.B.A.L. is quoted as under:- "4. Bayer ABS Limited will be....

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....ly, 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 C & F agent is entitled. A clearing and forwarding agent normally undertakes the following : (a) Receiving the goods from the factories or premises of the principals 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 receipt and dispatch of goods and the stock available at the warehouse; (f) Preparing invoices on behal....