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2018 (6) TMI 645 - AT - Service TaxClassification of services - An arrangement was made between them and HLL to the effect that the said Oil and Vanaspati would be sold through the marketing network of HLL for a period of 3 years - whether the activities of the appellant fall within the scope of "Commission Agent" under BAS or under "Clearing and Forwarding Agent"? - Held that:- As per the agreement, the scope of services to be performed by HLL is only as a commission agent for distribution of products of Bunge in designated territory. Evidently, the responsibility of transporting the products upto the depots to HLL is that of Bunge. Bunge has also been given the responsibility of transportation from HLL depots to the redistribution stockists. To fall within the tax net of clearing and forwarding agent service, the services provided have to be in relation to clearing and forwarding operation and not either clearing or forwarding operation - clearing of goods from Bunge upto the depot of HLL is done only by the former. Even secondary transportation from HLL depots is the responsibility of Bungee. This being so, we are unable to appreciate the reasoning of the lower authority that the activities of the appellants are in the nature of "consignment agent and would therefore fall within the scope of C&F agents service". The appellant cannot be brought within the fold of clearing and forwarding agents service. They are correctly classifiable only as a commission agent for BAS under Section 65 (19) of the Act. The impugned order holding to the contrary cannot then sustain and requires to be set aside in toto, which we hereby do - appeal allowed - decided in favor of appellant.
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