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2017 (12) TMI 286 - HC - Service TaxClearing and forwarding agency services - certain contracts entered into by the assessee, amongst others with Rampur Distillery and Holosticks India Pvt. Ltd. being in the nature of commission agency contracts also involving, in some parts, supervision of transportation of goods in certain circumstances - Whether the agreement entered into by the party for providing host of services viz. Supervision of transportation, Arranging transportation, Commission on Sale & Follow-up of Payment, would not constitute the service "Clearing & Forwarding Operations? - Revenue appeal against the majority order of the Tribunal. Held that: - the assessee was engaged merely in procurement of purchase orders for it's principal on commission basis which service became taxable only upon an amendment made to the Act and by introduction of new service being 'business auxiliary service', under Section 65(19) of the Act w.e.f. 01.09.2009 - All the activities that have been noted by the Technical Member to conclude that the assessee was engaged in 'clearing and forwarding' service are such activities as are not involved either with clearing of goods or with forwarding of any goods to any destination or person. Rather, those activities are only ancillary or supplementary to the activity of commission agency as they only seek to ensure prompt placement of orders; prompt supply of goods and prompt payment against such supplies etc. These are all arising from contract of commission agency. In any case, those activities are not such as may be linked with any of the activities required to be performed to treat the service as "clearing and forwarding" service. Appeal dismissed - decided against Revenue.
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