FENNER INDIA LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE lower authorities have demanded Service Tax of over Rs. 1.1 crores from the appellants for the period 1 -4 -2000 to 31 -12 -2003 in respect of what was considered as "Clearing and Forwarding Agent's Service" allegedly rendered to their subsidiary company namely, M/s, BMP Beltings Ltd. and have also imposed penalties on the assessee. After examining the records and hearing both sides, we find that the essential facts of the case are not in dispute and the same have been summarized in para 6 of the impugned order, which reads as under :

(2.) IT appears from the above facts that the appellants were physically dealing with excisable goods manufactured by M/s. BMP Beltings Ltd. They were receiving the goods into their premises and marketing the same for and on behalf of the manufacturer. The question which arose for consideration of the lower authorities was whether this activity of the appellants could be considered to be "Clearing and Forwarding". Ld. Commissioner (Appeals) reproduced the definition of "Clearing and Forwarding Agent" in para 7 of his order, which reads as under :