ORDER
T.V. Sairam, Member (T)
1. The Stay Petition has been filed by M/s. J.M.G. Steel Pvt. Ltd. who are challenging the Order-in-Appeal passed by the Commissioner (Appeals) who held that they were liable to Service Tax, as they were rendering the services of Clearing and Forwarding Agents.
2. Learned Counsel has contended that they work like a Commission Agent and not as a Clearing and Forwarding Agent. According to him, C.B.E.C.’s Circular dated 22.2.2002 clarifies that the Clearing and Forwarding Agents do the job of storing the goods and then forwarding them to the customers according to the instructions of the Principal Manufacturer.
2. From the records, it appears that the applicant/appellant company has only procured the Orders from the customers and forwarded the same to the Principal Manufacturer and that the Principal directly supplied the goods to the customers. In view of this, prima facie the case has been made out in favour of the applicant/appellant company for waiver of pre-deposit of duty and penalty before final hearing. The Application is allowed accordingly.
Pronounced and dictated in the open court.