2017 (10) TMI 408

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....he judgment of the Hon'ble Apex Court in appellants case. (i) 2015 (38) STR 897 (S.C.) COAL HANDLERS PVT. LTD. Vs. COMMISSIONER OF C. EX., RANGE KOLKATA-I Civil Appeal No.7215 of 2004 with C.A. Nos.5159 of 2013 and 9967 of 2014, decided on 5.5.2015 Clearing and Forwarding Agent - Coal transportation through railways - Agent/assessee undertaking (i) following up allotment of coal rakes by Railways; (ii) expediting/supervising loading and labelling of rail wagons; (iii) drawing samples of coal loaded on wagons; (iv) complying with formalities relating to payments for freight to Railways; and (v) dispatching rail receipts to principal - HELD : Services rendered by assessee did not qualify as C&F Agent within meaning of Section 65(25) of Fi....

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....al, 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. [para 11] Words and Phrases - Forwarding agent - Discussed. [para 10] Appeals allowed. That the aforesaid judgement was also followed by Hon. Bombay High Court in the following cases which is identical to that of Appellant's case in hand: (ii) 2015 (39) STR 946 (Bom.) COMMISSIONER OF SERVICE TA, MUMBAI-I Vs. SHAH COAL PVT. LTD. Central Excise Appeal No. 110 of 2014, decided on 20-7-2015 Clearing and Forwarding Agent's s....

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....ner of Service Tax - 2015 (38) STR 897 (S.C). In the said decision in respect of almost identical activities, Hon'ble Apex Court has held that such activities do not qualify under the category of clearing and forwarding agent service. After examination, the definition of Clearing and Forwarding Agent in various dictionaries Hon'ble Apex Court observed as follows: "11. From the reading of the definition contained in the aforesaid provision, together with its dictionary meanings contained in Legal and Commercial dictionaries, it becomes apparent that in order to qualify as a C&F Agent, such a person is to be found to be engaged in providing any service connected with 'clearing and forwarding operations'. Of course, once it is found t....

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....e of the aforesaid activities are performed by the appellant. There is no role of the appellant in getting the coal cleared from the collieries/supplier of the coal. Movement of the coal is under the contract of sale between the coal company and Ambuja companies. Even the coal is loaded on to the railway wagons by the coal company. The goods are not under any legal detention from which they need to be freed by the appellant. Not only this, destination of the goods is known to the coal company and the railway rakes are placed by the coal company for the said destinations. The destination is the factories of the principal itself, namely, Ambuja companies, where the coal is to be delivered by the coal company as per pre-determined/agreed coven....