TaxTMI 
TaxTMI 
2025 (9) TMI 1060
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.... registered with the Service tax Department. The appellant entered into two separate Agreements, both dated 23.10.2009 with PBPL and PPPL. Under the said Agreements, the appellant carried out the activity of receiving and storing the goods at the godown premises as 'Clearing and Forwarding agent'. In terms of the said Agreements, it was the responsibility of appellant to receive, store and hold the goods of PBPL and PPPL on their behalf in the said godown. The freight for inward movement of the goods till to the godown was borne by PBPL & PPPL and in case, if any expenses were required to be incurred by appellant for inward transportation, then the same was reimbursed to the appellant. On receipt of the goods from PBPL and PPPL depots under Stock Transfer Invoice/Proforma Invoice, the appellant unloaded the stock and prepared Goods Inward Report [GIR]. Under the said agreements, as per clause 5, the appellant were responsible for the safety of the goods dispatched to them by PBPL and PPPL from the time of receipt thereof by them until the goods were delivered to the wholesalers of PBPL and PPPL. In consideration of these services, the appellant received service charges of R....
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....ce tax was paid on behalf of PBPL and PPPL. He contended that the consignment note issued by the appellant for the activity of transportation undertaken was correctly covered under 'Transport of Goods by Road Service'. Accordingly, service tax had been correctly discharged on behalf of PBPL and PPPL by availing abatement of 75% under Notification No. 13/2008-ST dated 1.3.2008 and subsequent Notification No.26/2012-ST dated 17.3.2012. Learned counsel stated that as per clause (a) to the said Section 65A(2), the nature of the transportation services provided by the appellant was squarely covered under the specific description of the services provided under the 'Transportation of Goods by Road Service' and liability to pay service tax was upon PBPL and PPPL (being the consignors) and appellant had paid service tax only on behalf of M/s. PBPL and PPPL; thus in accordance with Section 65A(2)(a), Finance Act, 1994, taking into consideration the nature of the service provided by the Appellants, the service gets covered under 'Transport of Goods by Road Service', which give the most specific description. Learned Counsel relied on the following judgements and CBEC In....
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....pression of fact and/or deliberate intention to evade/avoid payment service tax cannot be alleged. Further, the appellant was under a bonafide belief that once service tax had been paid on the transportation charges under the head 'Transport of Goods by Road Service', then the same charges need not be again subjected to service tax under the head 'Clearing & Forwarding Service' and when the Appellants have acted under this bonafide belief, there is no suppression on their part. Consequently, the extended period is not invocable. Learned counsel contended that non-furnishing of information which is not required does not amount to suppression, as per several various judgements. Therefore, the learned counsel contended that the demand, penalties and interest are not sustainable. 4. Learned Authorized Representative while reiterating the findings in the impugned order, submitted that the appellant as CFA was required to forward goods of PBPL & PPPL to the wholesalers of the Parle. Thus, he contended that the transportation was included in the consideration received by them against the provision of taxable service of clearing and forwarding agent. While issuing the co....
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....of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency." 5.1 From the above, it evident that 'clearing and forwarding' operations would be various activities having bearing on clearance of goods, which would involve documentary processes and arrangements for transfer of goods to their destination, which process may also involve clearance at subsequent stages during forwarding operations. The procurer of orders on commission basis renders services which are not connected with such clearing and forwarding operations, which have bearing on the movement of goods. In the instant case, it is apparent that the appellant was registered for providing taxable services under the category of 'Clearing & Forwarding agent', 'Transport of goods by Road/GTA service' and 'Renting of immovable property service'. It is on record that the appella....
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....l within the purview of Rule 2(1)(d)(v) of Service Tax Rules, 1994. The appellant being agent of M/s. PBPL and M/s. PPPL, paid service tax on the transportation charges after availing abatement of 75% under Notification No.13/2008-ST dated 1.3.2008 and under subsequent Notification No.26/2012-ST dated 17.3.2012. For the said service, we find that the appellant was registered as GTA. 8. As per Section 67 of the Finance Act, 1994 during the disputed period i.e. 1.4.2010 to 30.9.2014, service tax was payable on the gross amount charged for the service provided. In this context, in so far as, Clearing and Forwarding Service and was concerned, we find that the appellant had discharged service tax liability on the gross amount charged for the services so provided. 9. We also observe that the transportation service was a activity separate from the Clearing and Forwarding Service. It is imperative to note that no lump sum amount had been charged for Clearing and Forwarding Service which included transportation charges. In this context, we note the judgment of Hon'ble Tribunal in the case of Commissioner of Central Excise, Lucknow vs. Technical Associates-2011 (24) STR 567 (T), wh....
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....g agent (Notification No. 26/97-ST refers). It may be noted that unlike in the case of other service tax levies where the service provider is the person responsible for collecting the service tax, in the case of services rendered by the clearing and forwarding agents the service tax liability shall be discharged by the person availing the service so rendered. In order words, the principal who engages a clearing and forwarding agent is the person responsible for collecting and paying the service tax to the exchequer, Commissioners of Central Excise may therefore take necessary action accordingly and also make this position clear by issue of suitable trade notice. 2.4 Further under the Finance Act, 1997 the value of taxable service rendered by a clearing and forwarding agent has been defined as the gross amount charged by such agents from the client for the services of clearing and forwarding operations in any manner. However, under service Tax rules it has been provided that the value of taxable service in relation to services rendered by clearing and forwarding agents to a client shall demand to be the gross amount of remuneration or commission (by whatever name called) pa....
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..... The primary job of the appellant, as per the contract between the appellant and the Ambuja companies, is of supervising and liaisoning with the coal company as well as the Railways to see that the material required by Ambuja companies is loaded as per the schedule. At no stage custody of the coal is taken by the appellant or transportation of the coal, as forwarders, is arranged by the appellant. We are, thus, of the clear opinion that the services rendered by the appellant would not qualify as C&F Agent within the meaning of Section 65(25) of the Act." 13. In view of the above settled legal position, we hold that the appellant had correctly discharged his duty liability on Clearing and Forwarding agent service. The Appellant had undertaken the transportation of goods independent of the Clearing and Forwarding service, and, as per the clause 8 of the agreement, the transportation charges were reimbursed by M/s. PBPL and M/s. PPPL to the Appellant. Further, the appellant was availing abatement of 75% as provided under Notification No.13/2008-ST dated 1.3.2008. In cases where the gross amount charged on the consignment transported did not exceed Rupees Seven Hundred Fifty, the A....
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....); (II) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; (III) any co-operative society established by or under any law; (IV) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; (V) any body corporate established, by or under any law; or (VI) any partnership firm whether registered or not under any law including association of persons; any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage: Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service tax." 15. On a plain reading of the aforesaid provisions it is clear that if the consignor or consignee is a body corporate/Company, then such body corporate/ Company is the 'person liable for paying service tax'. In the present case, M/s. PBPL and M/s. PPPL are the consignor and the wholesalers are consignees. At this poin....
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....has not shown any 'trade practice' which may lead to a necessary inference that service of one kind rendered by one is invariably considered to comprise both. No argument has been advanced before us by him to canvass that the legislature intention is discernible from the scheme of the statute or from any other relevant material. Therefore the word 'and' should be understood in a conjunctive sense. (See Maharaja Sir Pateshwari Prasad Singh v. State of U.P. (1963) 50 ITR 731). In these circumstances if we read the word 'and' as 'or' then it would amount to doing violence to the simple language used by Legislature which cannot be imputed ignorance of English language. In that regard we place reliance on the judgement of Hon'ble the Supreme Court rendered in the case of Inayat Ali Khan v. State of U.P. (1971) 2 SCC 31 (Para 5) and para 6 of the judgement of Hon'ble the Supreme Court rendered in the case of Ape Belliss India Ltd v. Union of India (2001) 132 ELT 8. The observations of their Lordship reads thus : "6........ A plain reading of the Section (sic Tariff Public Notice) clearly shows, as contended by Mr. Bhatt, that for an alloy ....
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....ole "operations" involved in "C & F operations" now remind us of an orchestra, performing a western classical symphony. It reminds us of a connoisseur's experience of harmony in western classical music. While listening to Mahler's 9th symphony, one does not listen to a individual violin or a trumpet, but the harmony emanating from many different seemingly unrelated instruments. In the same way, a C&F Agent's functions consisting of seemingly unrelated tasks are well orchestrated. This view of ours is strengthened by various references including the Report of United Nations Economic Commission for Africa referred to by us in the preceding paragraphs all revealing in no uncertain terms that the freight forwarders are known variously as clearing agent, shipping forwarding agent etc. We are, therefore, of the view that even if one segment of activities is not demonstrated to be performed, it cannot be held that the appellants were not engaged in taxable service. Due to their orchestrated nature of work, such isolated activity can also be covered under "C & F Operations". Merely, because the bassoon was not played in one of the movements of a symphony, it does not cease to b....