2008 (12) TMI 99

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.... V. Hariharan for the Respondent. ORDER 1. M Abirami Associates, Pondicherry (Abirami) entered into contract with Tamilnadu Petroproducts Limited (TPL) and Tuticorin Alkali Chemicals and Fertilizers Limited (TAC), inter alia, for receiving their goods, warehousing the same and forwarding them to buyers notified by it. The contracts also provided for TPL/TAC directly sending the goods to buye....

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....uring the material period. Abirami was not liable to pay tax as C&F Agent for any commission received in these cases. The demand therefore had to be modified accordingly and the issue had to be remanded for the purpose. Another grievance raised in the appeal is that the lower appellate authority had declined their prayer for re-quantifying the demand considering the receipts as cum-duty value. The....

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....L. This position is obvious from the CBEC's clarification contained in Circular No. B43/7/97-TRU, dated 11-7-1997. The Circular had clarified as follows : "2.2 Normally, there is a contract between the principal and the clearing and forwarding agent detailing the items and conditions and also indicating the commission or remuneration to which the clearing and forwarding agent is entitled. A cle....

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....ways valid and applied. "Explanation 2 - Where the gross amount charged by a service provider is inclusive of service tax payable, the value of taxable service shall be such amount as with the addition of tax payable, is equal to the gross amount charged." This was also the ratio of the Tribunal's decision in the case of CC&CE v. Advantage Media Consultant [Final Order Nos. A355-356 (Kol.) o....