TaxTMI 
TaxTMI 
2017 (4) TMI 705
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....ment proceeded against the appellant on the ground that it did not pay the service tax on taxable service namely, 'Clearing and Forwarding services' provided to its clients. The SCN issued by the Department has referred to various agreements entered into between the appellant and its clients namely, M/s. Cadbury India Ltd., M/s. Reckitt Benckiser (India) Ltd., M/s. J.L. Morrisson (I) Ltd., M/s. Gillette India Ltd., M/s. Jovco India Pvt Ltd., M/s. Consumer Marketing (I) Ltd. M/s. Cavin Kare Pvt. Ltd. M/s. Bata India Ltd., M/s. Asian Paints India Ltd., M/s. Dorcas Market Makers Pvt. Ltd., M/s. Wrigley India Pvt. Ltd. and M/s. Dumex India P. Ltd. On the basis of the terms and conditions mentioned in the said agreement, the Department had concl....
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....e Revenue reiterated the findings recorded in the impugned order and further submitted that the appellant has undertaken various activities as per the instructions of its clients; such activities, under the agreements, confirm to both clearing as well as forwarding of goods. Thus, he submitted that the decision of Tribunal in the case of Kulcip Medicines (P) Ltd. (supra) is distinguishable from the facts of this case. 5. Heard both side and perused the records. 6. The definition of taxable service with regard to "Clearing & Forwarding" is contained in clause (j) of Section 65 (105) of the Finance Act, 1994. Under the said clause, taxable service has been defined to mean "services provided to a client, by a clearing and forwarding agen....
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....td.- CIL hereby appoint the Firm to perform for CIL the services of storing, handling, forwarding and shipping the Products sent by CIL to the premises and the Firm agrees to perform the said services in term of the instruction and direction by CIL from time to time. ii). M/s. Wrigley India Pvt. Ltd.- The CFA shall receive stocks of goods/products (the 'Products') for and on behalf of the Company, and store such PRODUCTS under its control. The CFA shall place its indent on the Company's factory or depot. The Company shall dispatch the PRODUCTS, on a stock transfer basis, from the Company's factory or depot, as applicable, to the CFA under a Stock Transfer Note of the Company. The PRODUCTS shall then by sold by the....
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....resaid requirements of the Company. The CFA represents and warrants to the Company that it has the expertise and experience to fulfill the obligations and that it will be able to comply with its obligations keeping in mind the aforesaid requirements of the Company. 8. Perusal of the above agreement reveals the fact that the goods were consigned by the principals to the appellant's premises and the appellant did not undertake any clearing activity. Since the appellant is not undertaking the activities of both clearing and forwarding, service tax would not be leviable on the activity of mere forwarding and other incidental and ancillary activities, with reference to goods. In this context, this Tribunal in the case of Kulcip Medicine (P) L....
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....ice provider and receiver should be in the nature of principal (owner) and agent. The C&F agent carried out all activities in respect of the goods right from stage of their clearances from the premises of the principal to its storage and delivery to the customers.' 6. The above Para in the circular makes it clear that only when a C&F agent carries out both clearing and forwarding, the levy will be attracted. It is clear from the terms of the agreement that appellant herein does not attend to the clearing of the medicines manufactured by Cipla. Consignments of medicines are cleared from the factory by the manufacturer and delivered to the appellant at his premises. In this factual situation, it has to be held that there is no cleari....