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TMI Blog2016 (1) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... It was not engaged in clearance of the goods from the factory and therefore in the light of the judgement of Punjab and Haryana High Court in the case of CCE Vs. Kulcip Medicines (P) Ltd. - 2009 (14) STR 608 (P&H), it was not covered under the scope of clearing and forwarding agent service because to be covered thereunder the assessee has to be engaged in both clearing and forwarding of the goods. (ii) It was under bona fide belief regarding its non-liability to service tax and therefore extended period is not invocable. (iii) The appellant also contended that the reasoning in the impugned order is inadequate. 3. Ld. Departmental Representative on the other hand stated that in this case the appellant acted as a clearing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (v) Ownership of the goods is fully with the company and C&F Agent merely acts as a custodian of the goods. (vi) Goods are dispatched as advised by the company. (vii) The notice is fully responsible for collection of the payments for goods and deposit the same in the principals account. (viii) Noticee shall comply with all statutory and legal requirements such as registration/license for operation of C&F agency and for any other legal requirements that may be applicable to the operations of the C&F agency. It is clear from the provisions of the above-quoted agreement that as per the agreement itself the appellant was to act as clearing and forwarding agent for the purpose of receiving, storing and forwarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the factory. Supreme Court vide its order (2012 (25) STR J127 (Supreme Court) summarily dismissed the special leave petition against the said order of Punjab and Haryana High Court. Thus in the wake of Supreme Court judgement in the case of Kunhayammed Vs. State of Kerala 2001 (129) ELT 11 (SC) there was no merger of the Punjab & Haryana High Court order with the order of Supreme Court and consequently the judgement of Punjab & Haryana High Court did not acquire the strength and vitality of the Supreme Court order. We find that the definition of clearing and forwarding agent nowhere requires the clearing to be effected from the factory. Indeed the said judgement of Punjab and Haryana High Court has been taken due note of by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have no basis to entertain a belief that the service rendered by it in terms of the agreement cited above by any stretch of imagination would not be covered under the scope of clearing and forwarding agent service. Therefore the extended period has been rightly invoked. As regards the contention of the appellant that the reasoning of the Commissioner (Appeals) in the impugned order is inadequate, suffice to say that even if that is the case, the appellate court can use different reasoning based on transactional documents and come to an appropriate finding and the appellate court is not in any way bound by the reasoning of the lower authorities this regard. 5. In the light of the foregoing analysis, we do not find any infirmities in the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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