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2019 (6) TMI 629 - CESTAT KOLKATARefund of service tax paid - C & F Agent Service - Reverse Charge Mechanism - Rule 2 (d)(xii) and (xvii) of the Service Tax Rules, 1994 - HELD THAT:- The relationship is in the nature of Principal and Agent and further satisfies the definition of ‘Clearing and Forwarding’ Agent under Section 65 (25) ibid. Consequently, we are of the view that during the period 1997-1999, M/s. IES would be liable for payment of Service Tax on Reverse Charge Basis - In the light of the validating amendments vide Finance Act, 2000, subsequent to the order of the Hon’ble Supreme Court in Laghu Udhog [1999 (7) TMI 1 - SUPREME COURT], Service Tax paid under the category of ‘C & F’ Agent Service, will not be refundable. Demand of Service Tax under the category of ‘Clearing and Forwarding Agent’ service - Time limitation - HELD THAT:- M/s. ICI has acted as C & F Agent of M/s. IES for providing clearing and forwarding agent service. Since the agreement has continued during the dispute period, the classification of the service will continue under the Clearing and Forwarding Agent Service. Hence, M/s. IEL will be liable for payment of Service Tax as a service provider in terms of the agreement and we uphold the demand for Service Tax. Time Limitation - HELD THAT:- The service, “Clearing and Forwarding Agent Service” has been the subject matter of much Litigation. There have been conflicting decisions at the level of various judicial fora regarding the activities which are covered under the definition of Clearing and Forwarding Agent Service. A perusal of the agreement indicates that the activity undertaken is in the nature of “Consignment Agent” which is subsumed within the definition of Clearing and Forwarding Agent Service - the Revenue is not entitled to raise the demand for the extended period of limitation. Appeal disposed off.
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