CCE Vs. CARDAMOM MKG. CORPORATION AND

JUDGEMENT

(1.) The Revenue has challenged the order of the Commissioner (Appeals) holding that, the respondents, who were auctioneers, engaged in the business of conducting cardamom auction, cannot be categorized as "clearing and forwarding agent", as held by the adjudicating authority.

(2.) IN both these appeals, the respondents were engaged in the activity of cardamom auctioning which is governed by the terms and conditions of the licence and the marketing rules known as the 'Cardamom (Licensing and Marketing) Rules, 1987'. In the process, the growers or dealers brought to them cardamom which was to be sold by the licenced auctioneer, at a place, on a day and time specified by the Board as stipulated in the licence issued Under Rule 4(3) of the said Rules. According to the Revenue, the activities undertaken by the respondents of receiving and storing cardamom, drawing samples and selling cardamom at the auction for a commission of 1% was an activity falling under the taxable service of clearing and forwarding agents.

(3.) THE learned Authorized representative for the Department strongly contended that, the fact that the respondents were obliged to receive the goods from the growers and dealers, store them, draw their samples and show them to the prospective buyers and maintain the records of the goods received and sold and also prepare reports showing the said transactions, were the activities of clearing and forwarding agent, as defined Under Section 65(25) of Chapter V of the Finance Act, 1994, and contemplated under the Trade Notice No. 103/97 of Cochin Commissionerate issued on July 15, 1997.