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2014 (3) TMI 335 - AT - Service TaxClearing and Forwarding Agent Service - Penalty under Section 75A, 76, 77 & 78 - Appellant contends that they are simply doing transportation work and unlike clearing and forwarding agent. They are not involved in storing of goods on behalf of the principal and thereafter forwarding them from time to time as per the direction of the principal - Interpretation of Clearing and Forwarding Agent Service - Held that:- While arriving at this conclusion, we also go by the trade understanding based on sheer common sense, which is often uncommon. Because a buyer buys only rice and not wheat in a grocery shop, which claims to sell "wheat and rice", the shop cannot cease to be a shop selling "wheat and rice". In the same way, rendering only "forwarding" service cannot make the appellant cease to be a "Clearing and Forwarding Agent", so as to save him from the tax. Some customers may want only clearing operations, while some forwarding, and others both. The expression "clearing and forwarding operations" is a compendious expression of nature of services offered, any of which will bring the service providers in the tax net of this category. Moreover, in the process of forwarding operations - clearance stages may arise such as at octroi posts or subsequent transits - appellant is engaged in providing transport service as transporter and the initial service of temporary storage of the vehicles at or near railway sidings, which is eventually for a few days subject to availability of the rail rakes, will not render the appellant to fall under the category of ‘Clearing & Forwarding Agent' - Following decision of MEDPRO PHARMA PVT. LTD. Versus COMMISSIONER OF C. EX., CHENNAI [2006 (6) TMI 2 - CESTAT, NEW DELHI] - Decided in favour of assessee.
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