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2015 (1) TMI 904 - HC - Service TaxClearing and forwarding (C & F) agent - Manufacturer dispatch the goods from their respective factories to the depots/marketing network/distribution network of the appellants. Selling/distribution agreement was entered into between the appellants and BMF on 01.04.1995. – whether the respondent would come within the definition of clearing and forwarding agent as contemplated in Section 65 of the Finance Act, 1994 - held that - The nature of duty mentioned on the side of the respondent has not been denied on the side of the appellant. Since Section 65 of the said Act deals with clearing and forwarding agent and since the respondent, has not done its duty as clearing and forwarding agent and it has simply done only the duty of distribution of things which have been sent by BMF to the distribution centre of the respondent, it is pellucid that the respondent; would not come within the definition of Section 65(25) of the Finance Act, 1994. For invoking Section 65 (105) of the said Act, one must act as clearing and forwarding agent and than only Service Tax can be imposed. The decision rendered by the Punjab Haryana High Court has been upheld by the Hon’ble Apex Court reported in [2009 (12) TMI 851 - SUPREME COURT OF INDIA] [Commissioner v. Kulcip Medicines (P) Ltd.]. Therefore, it is quite clear that for invoking Sections 65(25) as well as Section 65(105), a person should have acted as clearing and forwarding agent. - work done by the respondent is not resemblance to clearing and forwarding agent and it has merely distributed the things which have been sent by BMF to the distribution centre of the respondent at its. own cost and therefore, in any event the respondent cannot be mulcted with liability under the cover of Service Tax. - Decided against Revenue.
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