RATHI ISPAT LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides. Appellant filed this appeal against the impugned order, whereby the demand of service tax has been confirmed in respect of consulting engineering service, real estate agent and clearing and forwarding (C&F) agent.

(2.) Contention of the appellant is that the demand in respect of clearing and forwarding service is confirmed after taking into consideration the decision of the Tribunal in the case of Prabhat Zarda Factory (India) Ltd. v. CCE reported in . The contention is that the applicants are only providing the service in nature of a commission agent and the same is not covered under the scope of C&F Agent. The decision of the Tribunal in the case of Prabhat Zarda (Supra) is over ruled by the Larger Bench in the case of Larson & Tubro Ltd. v. CCE, Chennai reported in 2006 (3) STR 321. The contention is that as per the terms and conditions of the agreement entered between the parties, the applicants are only working as commission agent and there is no evident on record to show that the activities of appellant covers under the definition of C&F agent.

(3.) IN respect of the demand confirmed on the service provided as a real estate agent, the contention is that the service is provided prior to the period when the service of real estate agent was not under the scope of service tax, however, the consideration amount were received after the introduction of the service under the service tax. Therefore, the demand in respect of service provided as a real estate agent is not sustainable.