TaxTMI 
TaxTMI 
2008 (7) TMI 101
X X X X Extracts X X X X
X X X X Extracts X X X X
....eptember, 1999 to March, 2002. Interest accrued amounting to Rs. 9,801.00 (Rupees Nine Thousand Eight Hundred and One only) paid vide TR-6 challan No. 1/2002-03 dated 26-4-02 and 2/2002-03 dated 17-7-02 paid by the assessee was appropriated to the Government Account. (ii) Penalty of an amount of Rs. 500/- (Rupees Five Hundred only) levied in terms of Section 75A for contravention of Section 69 read with Rule 4 of Service Tax Rules, 1994. (iii) Penalty of amount of Rs. 27,630.00 (Rupees Twenty Seven Thousand Six Hundred and Thirty only) levied in terms of Section 76 for contravention of Section 68 of the Finance Act, 1994 read with Rule 6 of Service Tax Rules, 1994. (iv) Penalty of Rs. 1000/- (Rupees One Thousand only) under Section 77 fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the principals held by the consignment agent. (iii) The assessee should not hypothecate and/or pledge and/or mortgage and/or raise loans on the stocks of the principal. (iv) The assessee should submit monthly stock statement/weekly report of sales and market development/monthly report on sales statement. (v) The assessee should use exclusively separate invoices. Delivery challans, gate passes etc. for the purpose of selling principal's product describing themselves as the principal's consignment agent and to indicate that stocks being the property of principal held by the respondent on consignment accounts. 2.1 Shri Y.S. Loni, appearing on behalf of Revenue submitted that when the charge itself in the show cause notice was meant for t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Respondent. Therefore that order being elaborate and reasoned, does not call for interference. 4.1 Heard both sides and perused the record. 4.2 We surprise how the learned Adjudicating Authority failed to pass a reasoned and speaking order taking into account the allegation made in show cause notice. Scrutiny of basis of taxation and material facts with the evidence available on record was desirable to be tested to declare the service provided whether was taxable service. Once totality of facts and circumstances are depicted in the order and manner of examination of facts with evidence is established by such order, the order shall be reasoned and speaking. Whether the facts gave rise to a taxable service calls for testing and if so, val....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ndered is "clearing and forwarding operation". Levy is attracted when there is provision of service: (a) of clearing and forwarding operations; (b) by a "clearing and forwarding agent"; (c) to a client; (d) directly or indirectly; and (e) in any manner. 6.5 The term "clearing and forwarding agent" was defined by Section 65(25) of the Act. Accordingly a "clearing and forwarding agent" is he who has been engaged in providing services of "clearing and forwarding operations" to a client directly or indirectly in any manner. Also by inclusive definition, that Section brought "consignment agent" to its fold to deal them as clearing and forwarding agent. 6.6 The Term "clearing and forwarding operations" was not defined by Finance Act, 1994.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the goods should be in the custody or possession of the Agent while carrying out aforesaid operations. But it is such service activity which enables the goods to reach its destination and may be through a series of several sub-activities, incidental or ancillary to the principal activity of clearing and forwarding operation. Various sub-activities integrally and inseparably connected with the principal activity of clearing and forwarding operation makes the operation performable without frustrating the contract. All such sub-activities even by their different character if any shall not oust the principal operation from being called as "clearing and forwarding operation", if such sub-activities independently carried out may fall under diff....