TMI Blog2007 (5) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... r Generics v. CCE reported in 2006 (3)S.T.R. 276 (Tri.) = 2004 (170) E.L.T. 78 (Tri.), to hold that the consignment agent is not liable to pay Service Tax. According to him, the respondent was neither consignment nor clearing agent nor forwarding agent nor the services provided by a consignment agent had been made taxable. Commenting on the agreement entered into by the respondent with Bayer ABS Ltd. and ADH Agencies, the Commissioner held that, the respondent was a consignment stockist. Accordingly the demand for Service Tax was dropped along with penalty imposed by the Deputy Commissioner in the order-in-original dated 7-3-2005. 2. The learned DR for the appellant relied upon the decision of the Larger Bench of this Tribunal in Medp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... livery of goods, besides being answerable to compliance with tax obligations. The said clauses are reproduced below: "19. The Company shall not be liable for any short delivery or damages in the said product or any part thereof after delivery of the said product is taken by the distributor or for any delay on supply of the said products caused by any circumstances beyond its control. The distributor, however, accepts full responsibility for any damages which may be incurred in respect of consignments of the said products despatched by rail, road, air or water provided it is not due to the fault of the Company." "22. While effecting sales of the said products the distributor shall disclose that he/it is a distributor of the Company, thou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for supply of the said products caused by any circumstances beyond the Company's control. The Consignment Agent, however, accept full responsibility of consignments of the said products despatched by rail, road, air or water." 5. A plain reading of these two agreements amply make it clear that the consignment agent is also responsible for the movement of goods dealt with by him in the manner as prescribed in various clauses of the said agreements which in our opinion, would fully qualify them to be a C F agent. It has been explicitly stated in the said agreements that the Company i.e. Bayer ABS Ltd. and SRF Polymers Ltd. shall not be liable for any short delivery of/or damages to the said products after delivery of the said products is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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