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Indirect Tax Laws
Notes 13. The ................................. also signs and stamps the original & duplicate copy of SDF.
14. Customs copy of shipping bill and original copy of the ................................. is retained
along with the original declarations by the Appraiser and forwarded to Export Department
of the Custom House.
15. .................................endorses the payment particulars in challan which is submitted to the
Customs.
Caselet Valli Inc. v. CCEx., Tiruchirappali 2009 (14)
S.T.R. 528 (Tri. - Chennai)
he appellant, Valli, entered into an agreement with ITC. As per the agreement, the
appellant has to maintain a showroom, display the products of ITC and remit the
Tproceeds promptly to ITC. Revenue contended that Valli had rendered clearing
and forwarding agent's service to ITC.
The Tribunal held that the appellant did not satisfy the definition of a consignment agent
as clarified in the C.B.E. & C. Circular No. 59/8/2003-S.T., dated 20-6-2003. The Board had
clarified that a consignment agent receives and dispatches goods on behalf of the principal.
However, in the instant case, Valli received the goods and sold them on its own as a
dealer. The appellant was not an agent of ITC, but an independent dealer in ITC's branded
goods. Merely receiving the goods in order to sell them from its own premises will not
amount to clearing of the goods as a clearing and forwarding agent. In the instant case, the
appellants received goods from ITC and disposed them on sale from its own outlet. The
appellant was not engaged in clearing and forwarding of the branded goods of ITC.
The Tribunal affirmed the contention of Revenue that three agents are normally involved
when clearing and forwarding agent's service is rendered, i.e., the principal, the ultimate
recipient of goods in business and the clearing and forwarding agent that forwards the
goods after taking delivery to dealers. In the given case, the dealer received the goods and
sold them in retail to consumers. He had Sales Tax registration and issued bills for sales.
No third agency was involved.
In the light of aforesaid discussion, it held that Valli could not be regarded as a clearing
and forwarding agent.
Source: http://220.227.161.86/20925frpubcd_bos1.pdf
10.3 Summary
In this chapter we have discussed about Goods imported in a vessel/aircraft attract customs
duty and unless these are not meant for customs clearance at the port/airport of arrival by
particular vessel/aircraft and are intended for transit by the same vessel/aircraft or
transshipment to another customs station or to any place outside India.
Detailed customs clearance formalities of the landed goods have to be followed by the
importers.
In regard to the transit goods, so long as these are mentioned in import report/IGM for
transit to any place outside India.
Customs allows transit without payment of duty.
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