Whether on facts of the case, the storage of spare parts for motor vehicles/their transportation/dispatch etc. would be treated as Clearing and Forwarding Agent's Service?

Talera Logistics Pvt. Ltd. vs. Commissioner of central Excise, Pune – III (2014(33) S.T.R. 514 (Tri – Mumbai )

Facts:

The appellant's services to M/s. Ford India Ltd. were considered Clearing and Forwarding Agent's Services by the department. However, according to the appellant, they were business support services. The spare parts of motor vehicles were kept in the godown of Ford who would manufacture motor vehicles. Further, the computers

were provided to the appellant for their day-to-day operations and the appellant was not engaged in arranging transport for receiving or dispatching goods. Since the appellant was under the bonafide belief that their activities did not fall under the Clearing and Forwarding Agent's Services.

The department in terms of the agreement between the appellant and Ford, the appellant was engaged in receiving service parts, packing,etc., carry out inventory control, to maintain customer relations, to do distribution, handling shipping, documentation and outbound transportation etc.Thus, the activities were essentially in the nature of Clearing and Forwarding Services.

Held

Considering the activities were to receive goods, warehouse the goods, receive and arrange dispatches, maintaining records for delivery etc. and the provisions of law, it was held that the services were Clearing and Forwarding services and not business support services.