AGRA STEEL CORPORATION Vs. CCE

JUDGEMENT

(1.) APPELLANTS filed this appeal against the impugned order whereby demand of service tax along with interest was confirmed and penalties were imposed.

(2.) THE appellants are engaged in handling and storage of iron and steel materials of M/s. Rashtriya Ispat Nigam Ltd. as a consignment agent in respect of stock yard at Agra and Kanpur. The appellants are registered under service tax rules and paying service tax in respect of commission received from Rashtriya Ispat Nigam Ltd. Show cause notice was issued for demand service tax in respect of gross amount charged as consignment agent by the appellants. The adjudicating authority demanded service tax after taking into consideration gross amount received on account of consignment agent.

(3.) CONTENTION of Revenue is that the appellants were appointed as consignment agent and as per terms and conditions of the agreement the appellants are to receive and clear the consignment, loading, un -loading into trucks, trailers, carrying transportation to stock yard, warehouse, etc. and thereafter the appellants were to dispatch the consignment to customers under invoices. Contention of the Revenue is that the appellants are charging the steel plants under composite bill. The appellants are providing service as consignment agent, therefore, the appellants cannot say that the charges of transportation, loading and unloading are not part of service provided by the appellants. As the appellants are charging by a single bill for the service provided by them, therefore, contention of the appellants that the charges in respect of loading, unloading, etc. are not includible in the gross amount chargeable to service tax is not sustainable.