TMI Blog2010 (3) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... nition of C&F agent under the Finance Act under Section 65(25) and the meaning of Del Credere Agent and the amendment brought into in the year 2005, whereunder Del Credere Agent is also included would clearly establishes that prior to the amendment, the service rendered by a Del Credere Agent had been excluded from service tax. Therefore we are of the view that since the respondent-assessee was not a C&F Agent for IPCL as it was a Del Credere Agent the respondent-assessee is not liable to pay service tax - 26 of 2005 - - - Dated:- 5-3-2010 - K.L. Manjunath and B.V. Nagarathna, JJ. REPRESENTED BY: Shri M.V. Chandrashekara Reddy, Advocate, for the Appellant. Shri K.S. Ravishankar, Advocate, for the Respondent. [Judgment per: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee falls under the category Del Credere Agent. Therefore, the assessee is not liable to pay the service tax. Accordingly, the appeal cart to be allowed. Being aggrieved by the same, the present appeal is filed by the revenue. 4. After hearing the learned counsel for the parties, we are of the opinion that the following Substantial question of law has to be considered in this appeal: (1) Whether on the facts and in the circumstances of the case, the service rendered by the assessee has to be classified as the C F Agent or as a Del Credere Agent. If the case of the assessee falls under the category of Del Credere Agent, whether the revenue is entitled to levy tax under the Service Tax Act? 5. The counsel for the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts customers and that the assessee shall ensure the proper repayment of the value of the goods sold by the IPCL to its customers. Therefore, he contends that the act of the respondent cannot h treated as a C F Agent. In the circumstances he requests the Court to dismiss the appeal. 7. Having heard the counsel for the parties, we have to look into the meaning of the Del Credere Agent. In Black's Law Dictionary, 6th Edition, Del Credere Agent means an agreement by which a factor, when he sells goods on credit for an additional commission (called a 'del credere commission') quaranties the solvency of the purchaser and his performance of the contract. Such a factor is called a 'del credere agent'. He is a mere surety, l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to any activity specified in sub-clause (I) to (vi) , such as billing issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any information technology service and any activity that amount to 'manufacture' within the meaning of clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944). Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this clause.- (a) 'commission agent' means any person who acts on behalf of another person and ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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