Customs, Excise and Gold Tribunal - Delhi
Saini Alloys Pvt. Ltd. vs Commissioner Of Central Excise on 17 July, 2006
Equivalent citations: [2007]10STT366
ORDER
S.S. Kang, Vice-President
1. The applicants filed this application for waiver of pre-deposit of service tax and penalty.
2. The Commissioner of Central Excise after relying upon the decision of the Tribunal in the case of Prabhat Zarda Factory (India) Ltd. v. CCE, Patna, , held that service rendered by the applicants are more appropriately covered under the category of services provided by C and F agent.
3. The contention of the applicants is that they are working as Commission Agent and relied upon the decision of the larger bench of the Tribunal in the case of Larsen and Toubro Ltd. v. CCE, Chennai, reported in 2006 (3) S.T.R. 321 (Tri.- LB), to submit that larger bench of the Tribunal over-ruled the decision of the Tribunal in the case of Prabhat Zarda Factory (Pvt.) Ltd. v. CCE, Patna (supra). The larger bench of the Tribunal in Larsen and Toubro Ltd. (supra) held that mere booking of orders for the principal by an agent on commission basis would not amount to provide services as Clearing and Forwarding Agent. Revenue also submitted that scope of the Clearing and Forwarding Agent has now been defined by the larger bench of the Tribunal in the case of Medpro Pharma Pvt. Ltd. v. CCE, Chennai, vide Order No. 05/06/LB, dated 26-3-2006 [2006 (3) S.T.R. 355 (Tri. -LB)].
4. As stated above, the decision of the Tribunal in the case of Prabhat Zarda Factory (Pvt.) Ltd. is over-ruled by the larger bench of the Tribunal. Therefore, we find that it is a fit case for reconsideration by the Adjudicating Authority in view of the above decision of the Tribunal. Therefore, the impugned order is set aside after waiving the pre-deposit of service tax and penalty. The matter is remanded to the Adjudicating Authority for fresh decision after affording an opportunity of hearing to the appellants.
5. The appeal is disposed of by way of remand.
(Dictated and pronounced in open Court).