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TMI Blog2005 (10) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... JDR, for the Respondent. ORDER The disputes relates to Service tax. 2. The appellant is a manufacturer of excisable goods. Investigation seemed to have revealed that he has a network of dealers who procure orders for his goods and process them. They then pass them over to the appellant for execution. The appellant paid commission to the said dealers for their services. Relying on the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue for decision is whether the commission paid to the dealers are taxable in this case. In other words whether the services provided by the dealers come under services rendered by clearing and forwarding agents. If the agents fall within the definition of clearing and forwarding agents then the recipient of the services will have to discharge duty under the amended provisions w.e.f. 16-7-199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observe that the services rendered by the 'Branch Manager' are identical with the service rendered by Ratna Zarda Company in Prabhat Zarda's case. We therefore hold that the appellant was a receiver of clearing and forwarding services during the material time and the commission paid to the clearing and forwarding agents is a taxable service. We make it clear that the commission paid is not an amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices rendered by clearing and forwarding agents an assessee liable to pay tax under Service Tax Act. These amendments were challenged before the Supreme Court. The Court while dealing with these challenges in the case of Gujarat Ambuja Cements Ltd. v. Union of India [2005 (182) E.L.T. 33 (S.C.)] upheld the Constitutional validity of these amendments and ruled "Furthermore the liability to pay in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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