COIR BOARD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE Appellants filed this appeal against the Revision Or.No. 1/2004 -2005 dated 4.8.2004, passed by the Commissioner under Section 84 of the Finance Act, 1994. The Appellants are Coir Board, a Central PSU, constituted under the Coir Industry Act, 1953. The purpose under this Act is to establish showrooms in various parts of India as measures of publicity for coir products and increasing the sale of coir products. The function of the Coir Board prescribed under the Act to promote by such measures as it thinks fit under the control of the Central Government, the Coir Industry. The Appellants are purchasing the coir products from manufacturers and selling the same through their showrooms. A show -cause notice was issued to the Appellants demanding service tax by treating the Coir Board as a provider of Clearing and Forwarding (C & F) service. The adjudicating authority dropped the proceedings on the ground that the Appellants buy the products from different manufacturers and sell the same at a fixed profit of 15% and there is no obligation on their part to sell the goods as per the directions of the manufacturers.

(3.) THE contention of the Appellants is that Appellants are buying the coir products from different manufacturers and selling the same through their showrooms to different buyers who are identified by the Appellants. The Appellants are not acting on behalf of the manufacturers of the coir products. The Board vide Circular F. No. B.43/7/97 -TRU dated 11.7.1997 has issued a clarification in respect of functions of C & F. The contention is that the Appellants are not receiving the goods from the manufacturers premises, rather the manufacturers of coir products are supplying the goods to the Appellants. The Appellants are also not receiving dispatch orders from the manufacturers, rather the Appellants are buying the products from different manufacturers and selling the same to different buyers who visit the showroom and not as per the directions of the manufacturers. Invoices are also prepared in the name of Coir Board only. Therefore the Appellants are not providing any service of clearing and forwarding including consignment agent. Therefore the demand is not sustainable.