TaxTMI 
TaxTMI 
2008 (8) TMI 49
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.... respondents have entered into agreements with manufacturers of goods to sell the goods as consignment agents. As per the agreements, the goods were entrusted to the respondents for sale on behalf of the company; (b) The respondents are required to keep sign board indicating that the goods are stored on behalf of the company. They are required to undertake loading and unloading of the goods and are entitled to reimbursement of actual expenses; (c) They are required to sell on such prices and terms and conditions as directed by the company; the consignment agent is not empowered to charge more rates than fixed by the company. (d) The goods so sold are required to be delivered to the customers by the consignment agent on behalf....
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....llows : A clearing and forwarding agent normally undertakes the following activities : a) Receiving goods from the factories or premises of the principal or his agents b) Warehousing these goods c) Receiving dispatch of goods as per the directions of the principal by engaging transport on his own or through the authorized transporters of the principal d) Maintaining records of the receipt and dispatch of goods and the stock available at the warehouse e) Preparing invoices on behalf of the principal." 4.2 He submits that the respondents are not owner of the goods; they undertake storage of the goods; the sales are done only on behalf of the principals; the invoices are also prepared only on behalf of the principals as re....
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....le of goods was being undertaken on their own decision; goods are dispatched as per their decision; invoices are raised in their own name and that collection of sale proceeds has been done at their own risk. 5.2 He relies on the following decisions : (i) Larsen & Toubro Ltd. vs CCE, Chennai, 2006 (136) ECR 0634; (ii) CCE, Jalandhar vs United Plastomers, 2008 (10) STR 229 (P&H); (iii) CCE&ST vs Transasia Sales Syndicate, 2007 (8) STR 467; (iv) Premier Sport Ltd vs CCE, 2007 (5) STR 150; (v) CCE, Vadodara vs Parekh Apparels, 2008 (9) STR 87; (vi) Style Cell vs CCE, 2008 (10) STR 456; (vii) MTR Foods Lts. Vs CST, Bangalore, 2008 (9) STR 353; (viii) Bellary Computers vs CCE, 2007 (8) STR 470; (ix) City Gold M....
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....on. The respondents have undertaken several activities which have been considered to be activities of 'clearing and forwarding agent'. 7. The relevant portion of the decision of the Larger Bench of the Tribunal in the case of Medpro Pharma Pvt. Ltd. vs CCE, Chennai (supra) is worth reproducing at this stage "31. We have heard both sides and perused the record. On a fresh look at the whole issue and after taking into account the various newfangled arguments and nascent lines of thinking, upwrapping before us, as discussed in the fore-going paragraphs, we find ourselves in a better position to appreciate the wisdom in the words of Jules Romains when he said : "What I say below represents only conclusions with which I would identif....
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.... it does not cease to be otherwise a part of the orchestra. While forming this view, we have certainly not overlooked the fact that while music can be sometimes taxing, a tax can never be musical 32. While arriving at this conclusion, we also go by the trade understanding based on sheer common sense, which is often uncommon. Because a buyer buys only rice and not wheat in a grocery shop, which claims to sell 'wheat and rice', the shop cannot cease to be a shop selling 'wheat and rice'. In the same way, rendering only 'forwarding' service cannot make the appellant cease to be a '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 expr....