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2015 (9) TMI 53 - AT - Service TaxClearing & Forwarding Agency Service or Business Auxiliary Service - penalty of under Sections 78 & 76 and also under 75A and 77 of the Finance Act - Held that:- Appellant's principal activity is sale and marketing of goods on behalf of the principal manufacturer and also for carrying out storage and distribution. The lower authorities have held that the levy would fall under C&F Agent service because the appellants are handling the goods in addition to sale and marketing. In view of definition and Explanation to Section 65 (19), it is clear that appellant's principle activity is sale and marketing of the goods for their principal manufacturer, eventhough they may handle the goods for storage and distribution and forwarding of goods. The Tribunal in an identical issue in the case of CCE Vs Transasia Sales Syndicate (2007 (7) TMI 82 - CESTAT, BANGALORE ) held that service rendered by the assessee do not fall under Clearing & Forwarding service but as "Commission Agents". - appellant's principle activity is not related to clearing & forwarding of goods, as it is clearly evident from the agreement that the appellant was appointed as Commission Agent for marketing and sale of goods. Therefore, the demand under C&F service is not sustainable as held in the above Tribunal's decision in CCE Vs Transasia Sales Syndicate (supra) which has been upheld by Hon'ble Supreme Court as reported in [2012 (3) TMI 419 - SUPREME COURT]. - service tax demand confirmed under C&F service is not sustainable - Decided in favour of assessee.
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