Customs, Excise and Gold Tribunal - Delhi
Commissioner Of Central Excise vs Chopra Brothers on 19 April, 2005
Equivalent citations: 2005(186)ELT381(TRI-DEL), 2006[3]S.T.R.672
ORDER V.K. Agrawal, Member (T)
1. Revenue has filed this Appeal against Order-in-Appeal No. 251/03 dated 30-6-2003 by which the Commissioner (Appeals) has held that M/s. Chopra Brothers, respondents are not providing the services as Clearing And Forwarding Agent.
2. When the matter was called, no one was present on behalf of the respondents nor there was any request for adjournment inspite of notice of hearing having been issued to them. I, therefore, heard Shri S. Bhatnagar, learned Departmental Representative and perused the records. The respondents received Tea from Tea Company/wholesale dealers and sell the same as per rate fixed by Tea Company/wholesale dealers kept proper accounts of such sale and charged commission for sale. The Assistant Commissioner, under Order-in-Original No. 156/ST/2001 dated 11-1-2002, has held that the respondents are working as Clearing and Forwarding Agent as they have been appointed by the Tea Company and the letter of agreement also contains terms and conditions for receiving, storing and selling of Tea. Commissioner (Appeals), however, under the impugned Order has set aside the Order-in-original holding that the respondents only acts on behalf of the Tea Company and get commission and, therefore, they are not clearing and forwarding agent.
3. As per Section 65(25) of the Finance Act, 1994 Clearing and Forwarding Agent means any person who is engaged in providing any service either directly or indirectly connected with the clearing and forwarding operation in any manner to any other person and includes a consignment agent. Further, as per provisions of the Finance Act, 1994, taxable service in relation to Clearing and Forwarding Agent means any service provided to a client in relation to clearing and forwarding operation in any manner. In the present matter, the respondents are receiving the goods from the Tea Companies and storing the same and subsequently tea is being sold by them. The services provided by them are thus, squarely covered by the definition of Clearing and Forwarding as given in Section 65(25) of the Finance Act, 1994.1, therefore, hold that the Respondents, M/s. Chopra Brothers are liable to pay service tax for the service of clearing and forwarding provided by them. Accordingly, the Order-in-Appeal passed by the Commissioner (Appeals) is set aside and the appeal filed by the Revenue is allowed.
(Pronounced in the Court)