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2019 (3) TMI 187 - AT - Service TaxClassification of services - Clearing & Forwarding Agent Services or not - discount received against their own export consignment from the shipping agents - Held that:- It is undisputed that appellant herein is a manufacturer and exporter of finished goods; the said finished goods are exported through containers which are procured through the shipping agents and it is a common knowledge that if the volume of exports and the containers booked are substantial, shipping agents do extend a discount to the exporter for the business generated by such shipping agents. The appellants have recorded the receipt of this amount as brokerage in their books of accounts. The orders of the lower authorities considering the amount received by the appellant as liable for tax on the category of ‘Clearing & Forwarding Agent Services’ is incorrect for a simple reason that appellant is a manufacturer and has utilised the services of various shipping agents for procuring containers for export of their goods. Here, the appellant has not rendered any services of clearing and forwarding to the shipping agents - demand not sustainable - appeal allowed - decided in favor of appellant.
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