TMI Blog2005 (6) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... -4-1998 of M/s. Indian Rayon and Industries Ltd. (White Cement Division) - since taken over by M/s. Grasim Industries Ltd. - addressed to the respondents. This factual position is not in dispute. The scope of services to be rendered by the respondents under this agreement to M/s. Grasim Industries Ltd. is clearly discernible from this document. The relevant part of the document is extracted below :- "(a) You shall be responsible for deposit of SALES TAX and CENTRAL SALES TAX on your depot in time. However, we will arrange the DD in favour of Sales Tax Authority after receiving information from you. You will also arrange for filing of the return through the Sales Tax consultant in time. You will also provide all details and statement, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... your cost. (g) You are required to maintain secrecy with regard to disclosure of information relating to our transaction with you, our customers and others. (h) You shall keep in deposit with us a security deposit a sum of Rs. 25,000/- which shall be refundable to you with interest @ 15% p.a. upon the due cessation of these arrangements. But the Company shall be entitled to adjust any sums due and payable by you against the said deposits. (i) You shall, whenever so required by the Company, render such further services including collection of dues from our customer, as the Company may from time to time advise, upon such terms and conditions as may be stipulated. (j) We wish to clarify that your engagements as Service Agent is not ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the definition of "Clearing and Forwarding Agent" under Section 65(16) of the Finance Act, 1994. This definition reads as under :- "Clearing and forwarding agent" means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operations in any manner to any other person and includes a consignment agent." It appears from the submissions of both sides that the dispute is whether the service provided by the respondents to M/s. Grasim Industries was directly or indirectly connected with clearing and forwarding operations in any manner. Ld. Counsel has vehemently argued that the service in question had nothing to do with clearing and forwarding operations and, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of his clients, that there was any such depot. This denial, however, is inconsistent with the respondents' own case, which is founded on the terms of the above agreement. Ld Counsel has relied on the Tribunal's judgment in Mahavir Generics v. Commissioner of Central Excise, Bangalore [2004 (170) E.L.T. 78 (Tri.-Del.)], wherein it was held that the appellant was not covered under the definition of 'Clearing and Forwarding Agent' and a demand of Service Tax in terms of Section 65(25) of the Finance Act, 1994 was vacated. It has been pointed out by ld. Counsel that the case of Prabhat Zarda Factory ( India ) Ltd . v. Commissioner of Central Excise, Patna [2002 (145) E.L.T. 222 (Tri.-Kolkata)] relied on in the instant case by the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding Agent", which was couched in a language which admitted wide meaning and scope, the Bench held that the service rendered by M/s. RZC can be held to be a service rendered 'in relation' to clearing and forwarding operations 'in any manner'. Accordingly, the service was held to be taxable. In the instant case, there are sharper clues indicating that the services rendered by the respondents to M/s. Grasim Industries Ltd. were connected with the clearing and forwarding of goods of the latter. It is beyond the pale of doubt that such services squarely fell within the ambit of the definition of "Clearing and Forwarding Agent" under Section 65(16) of the Finance Act, 1994. After a perusal of the order passed by the Tribunal in Mahavir Generic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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