TMI Blog2011 (5) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the recitals of the agreement, was that the appellant should provide handling, clearing and forwarding services to Cipla in respect of the pharmaceutical products of the latter - On these facts, the orders of the lower authorities directing the appellant to maintain their registration as C & F Agent for the material period have to be sustained - Appeal is dismissed - ST/2 OF 2003 - 378 OF 2011 - Dated:- 19-5-2011 - P.G. CHACKO, B.S.V. MURTHY, JJ. G. Shiva Dass for the Appellant. R.K. Singla for the Respondent. ORDER P.G. Chacko, Judicial Member. The short question arising for consideration in this case is whether the appellant was liable to remain registered with the department as Clearing and Forwardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s directed against the appellate Commissioner's order. 2. Heard both sides. The learned counsel for the appellant referred to their agreement with Cipla and submitted that the service rendered by them to Cipla was one of receiving, storing and distributing the products of Cipla and not one of clearing and forwarding. It was argued that the expression receive, store and distribute appearing in the text of the agreement would not mean clearing and forwarding . It was also pointed out that, for the same activities, the appellant obtained registration with the department under the head storage and warehousing service with effect from 16-9-2002 and has been paying Service Tax since then on storage and warehousing service . The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered service as 'forwarding agent' without rendering any service as 'clearing agent' and he be deemed to have rendered both services would amount to replacing the conjunctive 'and' by a disjunctive which is not possible. The counsel also referred to ADH Agencies v. CCE [2010] 25 STT 395 (Punj. Har.) wherein the Hon'ble High Court followed its earlier decision in Kulcip Medicines (P.) Ltd. (supra). Reliance was also placed on a few decisions of the Tribunal such as V.S._Distributors v. CCE [2009] 23 STT 12 (New Delhi - CESTAT), wherein the question considered was whether the activities of the assessee fell within the ambit of C F Agent's service. 4. Learned JCDR opined that the appeal could be reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istribute the goods. The appellant to provide handling, clearing and forwarding services for the products of M/s. Cipla to various stockists in Karnataka Region and various distribution centres all over the country. To receive, store and distribute the goods and forward the goods in such lots and in such manner to the parties and destination within the country, as per the direction of M/s. Cipla. 4. The goods remain the property of the principal. The goods remain the property of M/s. cipla at all times. 5. For the services provided, agent is eligible for commission. For the services provided, the appellant is eligib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above agreement read as follows: WHEREAS Vaman has offered to provide (handling, clearing and forwarding services for the said products to Cipla's various stockists in Karnataka Region and also to various distribution centres all over the country. The service will also include despatches of samples and sales promotional items as directed by Cipla. AND WHEREAS Cipla desires to avail of the said facilities and services offered by Vaman on such terms and conditions as set out hereunder. [Emphasis supplied] Obviously the services offered by the appellant to Cipla included clearing and forwarding of the products of Cipla, and this offer was accepted by Cipla. The relevant clauses of the agreement should be construed and unders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant should provide handling, clearing and forwarding services to Cipla in respect of the pharmaceutical products of the latter. The relevant provisions of the agreement, which we have already construed by drawing support from the recitals, clearly indicate that the appellant was appointed by Cipla as their agent to provide clearing and forwarding services to them. On these facts, the orders of the lower authorities directing the appellant to maintain their registration as C F Agent for the material period have to be sustained. It is ordered accordingly. 8. The question whether any show-cause notice was issued to the appellant for recovery of Service Tax under the head C F Agent's service for the aforesaid period is, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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