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2023 (8) TMI 123 - AT - Service TaxClassification of services - steamer agent service or not - amount received by them as brokerage - extended period of limitation - HELD THAT:- The factual position as emerged from the entire discussion is that appellant were engaged in booking, canvassing or advertising cargo as sub agent of various shipping lines. The work undertaken by the appellant is primarily on behalf of the steamer agent namely M/s. Freight Connection India Pvt. Limited and thus the work which was to be undertaken by the main steamer agent M/s. Freight Connection India Pvt. Limited was done by the appellant and for which certain brokerage was paid to them. In reality the work of steamer agent was performed by the appellant as sub-agent of the main steamer agent. Therefore, the services rendered by the appellant will be rightly classifiable under the category of steamer agent - the decision of the Larger Bench in the case of COMMISSIONER OF SERVICE TAX VERSUS MELANGE DEVELOPERS PVT. LTD. [2019 (6) TMI 518 - CESTAT NEW DELHI] noted, wherein it has been categorically held that it is not open to a sub-agent contend that he should subject to service tax liability in respect of service tax liability when the main contractor has paid service tax on the gross amount. Thus, since the appellant being a sub-contractor has provided the service of the steamer agent, they are liable to pay service tax. Extended period of limitation - proviso to Section 73 of Finance Act, 1994 - HELD THAT:- There has been a lot of confusion and mis-understanding in the trade whether the sub-agent need to pay service tax on the amount charged by them from the main contractor/ agent who has already discharged service tax liability on the gross amount - it is found that appellant were under the bonafide belief that no service tax was payable on the brokerage received by them for providing steamer agent service being a sub-agent - also, all the transactions between the appellant and M/s. Freight Connection India Pvt. Limited are recorded in the books of accounts - extended time to demand service tax under Section 73 is not invokable. The appellant are liable to pay service tax on the service provided by them as steamer agent however, the demand confirmed by invoking extended time proviso under Section 73 need to be set-aside - show cause notices issued within normal period to demand service tax is sustainable - Appeal allowed in part.
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