TaxTMI 
TaxTMI 
2024 (3) TMI 1044
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....the appellant would be sold to B-Class Members (twisters) for further processing i.e. twisting, after doing so, the twisters would bring back the twisted silk i.e. ready silk for the purposes of sale. 2.1 It thus appeared to the Revenue upon investigation that the appellant had received / collected commission / incidental expenses, godown rent for storage conversions charges but however, had not obtained Service Tax registration and thus had not remitted the service tax payment on the above services, which according to the Revenue, merited classification under the category of 'Clearing and Forwarding Agents'. The above resulted in issuance of four Show Cause Notices dated 8.12.2003, 15.12.2004, 23.2.2005 and 18.7.2005 proposing to demand the service tax under Clearing and Forwarding Agents services for the period 1.9.1999 to 31.3.2005 and it was also proposed to recover applicable interest and penalties. It appears that the appellant filed its reply denying the liability to service tax but, however, the original authority having considered the reply during adjudication, confirmed the proposed demands vide common Order in Original Nos. 12 to 15/2007 dated 29.3.2007. Aggrieved by ....
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....td. - 2009 (14) STR 608 (P&H) affirmed by the Hon'ble Supreme Court as reported in 2012 (25) STR J127 (SC) (c) Salem Starch & Manufacturers Service Industrial Co-Op Society Ltd. Vs. CCE, Salem - 2006 (1) STR 106 (d) CCE Vs. Bhuwalka Steel Industries - 2015 (2) STT 138 (Chennai) (e) State of West Bengal Vs. Calcutta Club Ltd. - 2019 (29) GSTL 545 (SC) 5. Per contra, the learned Assistant Commissioner relied on the findings of the original authority as well as the first appellate authority. He specifically drew our attention to paragraph 6 of the impugned order wherein the first appellate authority has reproduced the receipts in the hands of the appellant. 6. We have heard rival contentions and carefully perused the orders of the lower authorities and the documents placed on record. It is an undisputed fact that the appellant had received various payments as recorded at para 6 of the impugned order. But however, the appellant has explained the nature of such receipts. Further, it is also an undisputed fact that the appellant being a society would facilitate the sale and purchase of raw silk and twisted silk both belonging to its members. In this c....
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.... dispatch, the invoices were prepared by the assessee. Going by the nature of activity, it was clear that the assessee was required to be assessed as clearing and forwarding agents. The Assessing Officer further pointed out that the assessee had paid the Service Tax under storage and warehousing, with effect from 16-8-2002. Thus, considering the status to be assigned to the assessee herein as a clearing and forwarding agent, the Assessing Officer adjusted this payment towards the liability fastened on the assessee. Thus holding against the assessee, the Assessing Officer confirmed the levy of penalty too in not submitting the transactions." 7. After hearing both sides, the Hon'ble High Court has held at para 15 to 17, which read as below:- "15. The case of the Department is that the nature of services accepted by the assessee included receiving of goods from the Principal, warehousing of the goods, receiving the dispatched orders from the Principal, arranging dispatch of goods as per the directions of the Principal, maintaining records of the receipt and dispatch of goods and the stock available at the warehouse and preparing invoices on behalf of the Principal. As ....
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....e that the assessee, in fact, received the goods from the premises of the Principal and arranged despatch of goods as per the directions of the Principal by engaging transporter on its own or through various transporters, we have no hesitation in accepting the submission of the assessee that the nature of transactions viz., despatching of goods and offering storage facilities by the assessee, does not fit in with the criteria given in the circular to treat the assessee as a clearing and forwarding agent. As pointed out by the learned counsel appearing for the assessee, the nature of activity is a composite one, enabling the Principal to bring the products to the assessee's premises and the assessee giving financial facility to the members, so that, ultimately on the sale of sago, on the receipts received by the assessee on behalf of the Principal, the same was settled after deducting whatever amounts were due to the assessee on the advance payment made by the assessee to the principal. Thus, providing a platform for the sellers and buyers to meet in a common place, providing a storage facility to the manufacturer, the financial help rendered to the members and organising of the sal....