TMI Blog2018 (8) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the service to be ‘Business Auxiliary Service’ has held that exemption as per N/N. 13/2003-ST is not applicable. Appeal allowed - decided in favor of appellant. - ST/89/2008-DB - Final Order No. 21111 / 2018 - Dated:- 7-8-2018 - HON'BLE MR. S.S GARG, JUDICIAL MEMBER And HON'BLE MR. P. ANJANI KUMAR, TECHNICAL MEMBER MR. RAVI SHANKAR K S, ADVOCATE MR. N. SATHEESH KUMAR FOR THE APPELLANT MR. PAKSHIRAJAN, AR FOR THE RESPONDENT ORDER Per : P. Anjani Kumar M/s. Toyota Kirloskar Motors Ltd., the appellants, are engaged in manufacture and sale of cars. By virtue of an agreement, they have permitted two local companies M/s. Sun Star CCI and M/s. Savita Chemicals Ltd. to sell their lubricants to dealers of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order No.22/2005 dated 30.11.2005 has dropped the proceedings holding that the appellants do not undertake any of the activities which a C F Agent undertakes. The Commissioner of Central Excise has issued a show-cause notice under the powers to review as per the provisions of Section 84 of the Finance Act, 1994 holding that the Tribunal in the case of Prabhat Zarda Pvt. Ltd. (supra) has held that procuring the orders and passing them to the principal manufacturer for execution in lieu of payment of commission is within the scope of services of Clearing and Forwarding Agent , even if, the goods are not directly dealt by them . 2.1 The learned counsel further submitted that, however, the Commissioner while deciding the issue vide Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of the case of Prabhat Zarda Factory (India) Ltd. (supra), it is submitted that the decision was overthrown by the Larger Bench decision in the case of Larsen Toubro Ltd. vs. CCE, Chennai: 2006 (3) STR 321 (Tri.-LB) wherein it was held that mere procuring or booking orders for the principal by an agent on payment of commission basis would not amount to providing service as Clearing and Forwarding Agent . The decision of the Tribunal in the case of Prabhat Zarda (supra) was further disapproved by the Hon ble Supreme Court in Coal Handlers P. Ltd. vs. CCE: 2015 (38) STR 897 (SC). The learned Commissioner has erred in denying the benefit of Notification No.13/2003-ST which was available to all Business Auxiliary Service provided by a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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