9911796707
TMI Blog2008 (10) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... g Agent to M/s ITC Limited (ITC) during 1.6.01 to 31.3.04. He had demanded service tax of Rs 52,862/- and imposed penalties under different sections of the Finance Act, 1994 (the Act). 2. After studying the agreement between M/s. ITC and Valli Inc., the Commissioner (Appeals) found that Valli had rendered C&F Agent's service to ITC. As per the agreement, the appellants received branded goods of ITC, maintained a show-room with air-conditioning, engaged in promotion of sale of the consignor's products, sold them at prices fixed by ITC and was entitled to a commission of 20% on the basic sale price of the products. Valli was to periodically remit the proceeds to ITC. The appellant was barred from dealing with similar products of any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered service of C&F Agent and incurred liabilities as found by the original authority. 4. Reiterating the grounds taken in the appeal, ld. Counsel for the appellants submitted that the lower authorities had been misled by the expression "Consignment Sales Agent" in the agreement and construed that the appellant was a C&F Agent. Valli did not receive goods from ITC or any of its agents, for warehousing them for dispatch as advised by ITC. Valli displayed the goods in their show-room and sold the goods on their own as an independent dealer registered under the Central Sales Tax Act and the Tamil Nadu Government Sales Tax Act. As per the agreement, Valli was to maintain a show-room in line with the concept and design ITC would develop and adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods from the factories or premises of the principal or his agents; b) Warehousing these goods; c) Receiving dispatch orders from the principal; d) Arranging dispatch of goods as per the directions of the principal by engaging transport on his own or through the authorized transporters of the principal; e) Maintaining records of the receipt and dispatch of goods and the stock available at the warehouse; f) Preparing invoices on behalf of the principal. It was submitted that the appellant did not undertake activities a C&F Agent undertook as enumerated in the above Trade Notice. Relying on the Larger Bench decision of the Tribunal in Larsen & Toubro Ltd. Vs. CCE, Chennai, 2006 (75) RLT 186 (CESTAT-LB) = 2006 (3) STR 321 (Tri.-LB) it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing of the goods as a C&F Agent. In Medpro Pharma Pvt. Ltd. (supra) relied upon by the Ld. SDR, the appellant therein received, stored and distributed the stocks of the products of M/s. Cipla Ltd. and forwarded them to parties at several destinations within the country as per the directions of M/s. Cipla Ltd. The ratio of the above decision of the Tribunal is that in order to assess as a C&F Agent, it was not essential that a person undertook all the operations encompassed in clearing and forwarding. In the instant case, the appellants received goods from ITC and disposed them on sale from its own outlet. The appellant is not engaged in clearing and forwarding of the branded goods of ITC. The appellant does not satisfy the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
