TaxTMI 
TaxTMI 
2018 (7) TMI 1373
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on all consignments of converted goods sent to the Stockyard/Own Consignment Agent at a place other than Kanpur @ Rs. 250/- per M.T. and in the case of Stockyard/Consignment Agent located in Kanpur @ Rs. 150/- per M.T. 4. The Adjudicating authority confirmed the demand of Service Tax of Rs. 5,73,153.00 and Rs. 16,62,207.00 along with interest and imposed penalties. 5. By the impugned Order the Commissioner (Appeals) set aside the Adjudication Order and allowed the appeal of the assessee. Hence, the Revenue filed the appeals and the assessee also filed Cross Objection. 6. Heard both sides and perused the appeal records. 7. The Learned A.R. for the Revenue reiterates the Grounds of Appeal filed by the Revenue. The Learned A.R. submitted that the Assessee rendered the services to Tata Steel Limited as Consignment Agent as revealed from the Agreement. The Commissioner (Appeals) observed that the Assessee was converting the raw materials procured from TSL into finished products and supplied the same to TSL on payment of excise duty. It is further observed that the assessable value for payment of excise duty includes the freight and transportation charges from factory gate t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e perused the copy of the Invoices placed by the Learned Counsel for the assessee in the compilation. It is seen that the Assessee paid the duty on the Invoice value. We find that the Hon'ble Punjab & Haryana High Court in the case of Commissioner of Central Excise, Panchkulla Vs. Kulcip Medicines (P) Ltd -2009(14)STR 608 (P& H) while dealing with the taxability on clearing and forwarding agent service rejected the appeal filed by the Revenue. The relevant portion of the said decision is reproduced below : "10. A perusal of the aforesaid Section shows that taxable service has been defined to mean any service provided or to be provided to a client by a 'clearing and forwarding agent in relation to clearing and forwarding operations in any manner'. If the clearing operation are separated from forwarding operations, the levy of tax would not be attracted if it only involves one of the two activities. 11. The question which falls for consideration is whether word 'and' used after the word 'clearing' but before the word 'forwarding' at two places in clause (j) be considered in a conjunctive sense or dis-injunctive sense. It appears to be fairly well settled that the context and in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it would have been made clear by using the word "of instead of the word "and"." 12. We are further of the view that the circulars issued by the Board are binding and meant for adoption for the purposes of bringing uniformity. In that regard reliance may be placed on the judgments of Hon'ble the Supreme Court in the cases of Ranadey Micronutrients v. Collector of Central Excise - 1996 (87) E.L.T. 19 (S.C.) and Paper Products Ltd. v. Commissioner of Central Excise - 1999 (112) E.L.T. 765 (S.C.) = (1999) 7 SCC 84. If the aforesaid principle is applied to the facts of the present case there does not remain any doubt that the circular issued by the Board is to be considered as binding and cannot be deviated even by the department. On that account also the expression 'clearing and forwarding agent' have to be interpreted in the light of the circular. 13. The view taken by the Tribunal in M/s. Mahavir Generics's case (supra) has been accepted by the revenue as no appeal has been filed. Moreover we are not able to persuade ourselves to accept the view taken by the Larger Bench of the Tribunal in the case of Medpro Pharma Pvt. Ltd. (supra) which has been fascinated by musical notes of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce", the shop cannot cease to be a shop selling "wheat and rice". In the sameway, rendering only "forwarding" service cannot make the appellant ceases to be "Clearing and Forwarding Agent", so as to save him from the tax. Some customers may want only clearing operations, while some forwarding, and others both. The expression "clearing and forwarding operations" is a compendious expression of nature of services offered any of which will bring the service providers in the tax net of this category. Moreover, in the process of forwarding operations clearance stages may arise such as at octroi posts or subsequent transits. 33. We, do agree that it is the context in which the word "and" is positioned, being sandwiched between the words "clearing" and "forwarding" has to be looked into while interpreting the meaning. Like the legendary Trishanku, the word "and" is dangling between "clearing" and "forwarding"- neither divorcing from the Heavens, nor from the Earth. In such a positioning, it is not possible to segregate the holistic concept of "clearing and forwarding" into divisible activities, either or both of which can be provided for answering the customers' needs." 14. We have n....