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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, NEW DELHI
DR. CHITTARANJAN SATAPATHY TECHNICAL MEMBER , ASHOK JINDAL JUDICIAL MEMBER
Kanpur Chemical Agencies -Appellant
Versus
Commissioner of Central Excise, Kanpur -Respondent
FINAL ORDER NO. ST/37 OF 2010 APPEAL NO. ST/484 OF 2006 WITH MISC. NO. 631 OF 2008, WITH MISC. NO. 631 OF 2008 of 2008
Decided On : 01-07-2010
R. Santhanam,S.R. Meena
Dr. Chittaranjan Satapathy, Technical Member. - Heard both sides.
2. Shri R. Santhanam, ld. Counsel appearing for the appellant states that the impugned demand which relates to M/s. Birla Corporation Ltd. M/s. Kanoria Chemical and Industries Ltd. only for procuring orders on their behalf. He states that the appellant had not rendered any clearing and forwarding agent service in respect of these two clients. As such, the appellants are not liable to pay Service Tax in respect of procuring orders as held by the Larger Bench of the Tribunal in the case of Larsen & Toubro Ltd. v. CCE [2006]
3. Heard the ld. DR who states that the appellant had not submitted copy of the agreement to which the ld. Advocate for the appellant submits that there was no written agreement.
4. After hearing both sides and taking into account the cited decision of the Larger Bench, we are of the view that as contended by the appellants, since in respect of M/s. Birla Corporation Ltd. and M/s. Kanoria Chemical & Industries Ltd. they were only procuring orders, no Service Tax is payable by them in view of cited decision of the Larger Bench. As such, we set aside the impugned order and remand the matter to the original authority for verification of the nature of activity undertaken by the appellant and decide the matter afresh applying the ratio of the cited decision of the Larger Bench. The appeal is allowed by way of remand. The appellant shall be given an adequate opportunity of hearing before passing a fresh order. The Misc. application filed by the appellants stands disposed of.
