Supreme Court on section 65 of Finance Act, 1994

Last updated: 11 May 2008

Court :
Supreme Court

Brief :
Section 65 of the Finance Act, 1994 - Clearing and forwarding agent’s services - Period 1-9-1999 to 31-7-2002 - Assessee entered into an agreement with Gas Authority of India Ltd. (GAIL) titled ‘Consignment Stockistship Agreement’ - Under said agreement, main activity of assessee was to get orders from clients and sell products of its principal to various customers - Besides, assessee performed various jobs such as to lift goods for delivery and arrange for distributing them to buyers by making necessary transit arrangements - Revenue demanded service tax from assessee in category of clearing and forwarding agent’s service on ground that activities of lifting, receiving, stocking and delivering goods to buyers made a clear chain of activities, involving clearing and forwarding operations - Whether to determine as to whether assessee had rendered said taxable services, it was necessary to ascertain as to whether purported job of assessee as a clearing and forwarding agent was incidental to its main activity - Held, yes - Whether same having not been a ascertained, matter was to be remitted to assessing authority - Held, yes

Citation :
Yet to Report