2008 (5) TMI 236

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....llant, M.S.Nagaraja, for the Respondent. ORDER 1. This appeal of the revenue is against an order of the Commissioner (Appeals) setting aside an order of the original authority demanding service tax from the respondents by treating them as "Clearing and Forwarding Agents" for the period 25-2-2000 to 3-2-2003. In the impugned order, the learned Commissioner (Appeals) found as follows :- "(a) The....

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....(Appeals), on the above basis, held that the appellants before him (present respondents) were only 'Commission Agents' and not 'Clearing and Forwarding Agents'. Hence, the dropping of demand of service tax. 2. In the present appeal of the revenue, the aforesaid findings of the lower appellate authority, barring the last mentioned one, are not, under challenge. The appellant submits that the respo....

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....usted with the work of clearing and forwarding of the goods would be a person who, in the ordinary course of business, makes contracts for sale or purchase of goods for others. The definition of "commission agent" in section 2 (aaa) of the Central Excise Act, 1944, would apply in relation to service tax as it applies in relation to duty of excise by virtue of sub-section (121) of section 65 of the....

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....This clearly shows that the activity of mere procurement of purchase orders for the principal on commission basis of a commission agent is treated separately by the Parliament from the activities of a clearing and forwarding agent. Activity of procuring orders is thus independent of clearing and forwarding operations. The agents doing these activities can be different. Moreover, clearing and forwa....