KULCIP MEDICINES (P) LTD. Vs. CCE

JUDGEMENT

(1.) The appellant distributes the medicines manufactured by M/s. Cipla Ltd. Under the impugned order it has been held that the appellant is a clearing and forwarding agent of Cipla and service tax was payable on the appellant's receipts under Heading 'Clearing and Forwarding Agent'. That finding is being challenged in the present appeal.

(2.) The submission of the appellant is that in terms of the contract with Cipla, delivery of the medicines was effected by Cipla to the appellant at Ambala and the appellant carried out only further distribution. The learned Counsel for the appellant took us through the terms of the agreement and highlighted that there was no clearance of the goods from Cipla's factory by the appellant. If at all, his job was that of a forwarding agent. It is the appellant's submission that service becomes service of clearing and forwarding, only if, both clearing and forwarding are undertaken. It is being stressed that service tax is not attracted on clearing of forwarding charges when undertaken in isolation; but only when both these services are rendered together. the learned Counsel also took us to CBEC Circular No.37B Order No.2/1/2002.ST dated 20.04.2002 and submitted that according to the Circular only if C and F Agent carries out all activities in respect of goods right from stage of their clearance from the premises of the principal to its storage and delivery to the customers, tax would be attracted.

(3.) Learned Counsel has also submitted that this issue had come up before this Tribunal in the case of another C&F agent of Cipla, M/s. Mahaveer Generics, Bangalore wherein also, the terms of the relationship was similar and the Tribunal held vide its order ST F No.12/04 -NB(A) dated 27.4.2004 that no Service Tax was attracted. The learned Counsel strongly relied upon on this decision in support of his case.