- (1.) Heard Sri Pratik Chandra, learned counsel for the appellant and Sri M.P. Devnath, Sri Vivek Sharma and Nishant Mishra, learned counsel for the respondent.
(2.) This appeal under Section 35 G of the Central Excise Act, 1994 has been filed by the revenue against the order of the Customs, Excise & Service Tax Appellate Tribunal dated 06.07.2007 raising the following question of law:- "Whether the agreement entered into by the party for providing host of services viz. Supervision of transportation, Arranging transportation, Commission on Sale & Follow-up of Payment, would not constitute the service "Clearing & Forwarding Operations"
(3.) The facts giving rise to the present appeal as have been noted by the Tribunal are that the assessee was engaged in the manufacture of craft paper and also providing certain services. The dispute in the present appeal arises with respect to certain contracts entered into by the assessee, amongst others with Rampur Distillery and Holosticks India Pvt. Ltd. being in the nature of commission agency contracts also involving, in some parts, supervision of transportation of goods in certain circumstances. The terms of contracts as extracted by the Tribunal in the impugned order are quoted herein below:- "8. As regards, the services provided to the two customers, we find that in respect of Rampur Distilleries, the appellants have been appointed as commission agent from 01.09.1999 by an appointment letter and the same arrangement was continued by another letter dated 10.07.2000. The relevant clause in both the appointment letters read as under:- 1. Products: Product means Extra-Neutral Alcohol (ENA) as Rectified Spirit of the specification set out here to as amended from time-to-time by Rampur Distillery at it sole and absolute discretion and such other product as may be agreed upon time-to-time. 2. Appointment " Rampur Distillery hereby appoint Tehri Pulp & Paper Ltd. As Commission Agent, as its non-exclusive agent on commission basis on the terms from a provisions and covenants hereunder contained, for the purpose of sale of products on behalf of Rampur Distillery. 3. The appointment does not confer any exclusive right upon the Commission Agent and that Rampur Distillery is at liberty to appoint more agent on commission basis on such conditions as it may decide, or to carry out the work specified herein for and on its own behalf.;