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2017 (4) TMI 705 - AT - Service TaxClearing & Forwarding Agency Service - case of appellant is that pursuant to the agreement entered with various client companies, the goods were consigned by them (clients) to the godown of the appellant and the appellant merely forwarded the goods to the persons as instructed by the principals, in the whole exercise of handling the goods, there was no clearing of goods by the appellant from the factory of the clients and thus, such activity will not fall within the ambit or scope of Clearing & Forwarding service for levy of service tax - Revenue claims that appellant has undertaken various activities as per the instructions of its clients; such activities, under the agreements, confirm to both clearing as well as forwarding of goods. Held that: - to fall under the purview of taxable service, both clearing and forwarding activities should be provided by the service provider. This fact is evident from the word 'and' used after the word 'clearing', but before the word 'forwarding' in clause (j) of Section 65 (105) ibid. Thus, the word 'and' placed in between the words 'clearing' and 'forwarding' should be considered in a conjunctive sense. The goods were consigned by the principals to the appellant’s premises and the appellant did not undertake any clearing activity. Since the appellant is not undertaking the activities of both clearing and forwarding, service tax would not be leviable on the activity of mere forwarding and other incidental and ancillary activities, with reference to goods. Appeal allowed - decided in favor of appellant.
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