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2005 (1) TMI 423 - CESTAT (BANGALORE)Service Tax - Del Credere Agency - Penalty - appellants providing taxable service under the category "Clearing and Forwarding Agents" - Whether the commission received on account of Del Credere Agency is liable to Service Tax under the category of C&F Agents as defined in Finance Act, 1994 - HELD THAT:- It is very clear that as per the Agreement entered between the appellant and M/s. IPCL, they indemnify M/s. IPCL against the default in payment of creditors. For this purpose, they receive commission at the rate of Rs. 250 per MT. In these cases, they do not even handle the goods. The customers directly book orders and the Principal sends the goods to the customers. In case the customers default in payment, the appellant undertakes the liability and compensates M/s. IPCL. In our view, this service cannot come within the purview of C&F operations. Even though the appellant is a C&F Agent, every activity undertaken by him cannot be brought within the purview of C&F operations. Thus, we do not find any merit in the OIA. We allow the appeal with consequential relief.
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