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2014 (10) TMI 135 - AT - Service TaxNature of activity - Clearing and forwarding agents - Held that:- use of expression and in between two expressions clearing and forwarding is reflective of the legislative intention to cover the person rendering clearing and forwarding services both. We also note that in a recent decision, Tribunal in the case of Videocon TV Manufacturer (P) Ltd. vs. CCE NOIDA, vide [2013 (7) TMI 349 - CESTAT NEW DELHI], by referring to Tribunals Larger Bench decision in the case of Larsen & Toubro Ltd. vs. CCE, Chennai reported in [2006 (6) TMI 3 - CESTAT CHENNAI] has held that inasmuch as the assessee is working on commission basis and is not engaged in the activity of receiving goods from the factory or premises of principal, warehousing these goods, receiving despatch orders, arranging despatch of goods as per the direction of the principal, maintaining records of the receipt and despatch of goods and preparing invoices on behalf of the principal cannot be held to be clearing and forwarding agent. The main activity of clearing and forwarding agent is that he receives the despatch orders from the principal and arranges clearance of the goods in terms of the directions of the principal. He is not free to sell or purchase the goods by his own choice - appellant is free to sell the goods to his customers in small lots. Such permission given to the assessee in the present case is indicative of the fact that he is not working as clearing and forwarding agent of the principal. As such, we are of the view that no service tax liability would arise against him - Decided in favour of assessee.
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