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2017 (8) TMI 400

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..... ppeal allowed - decided in favor of appellant. - ST/382/2009 - 41497/2017 - Dated:- 3-8-2017 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri V.S. Manoj, Advocate for the Appellant Shri A. Cletus, Addl. Commissioner (AR) for the Respondent ORDER Per: Bench The appellants are Custom House Agent and are registered for such services with the department. On the basis of intelligence that they were collecting charges from various shipping liners @ 2% of the basic ocean freight, in the name of brokerage, and is not discharging service tax on such amount received. The officers of preventive unit visited the premises and recovered documents and recorded statements. Purs .....

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..... as discharged service tax on the commission received as custom house agent and the brokerage or incentive received from the shipping liner cannot be considered as a commission since the appellant does not communicate with the shipping liner as a steamer agent. He submitted that steamer agent is exclusively appointed by the shipping liner for the services to be rendered and is also paid commission. The learned counsel relied upon the Board Circular dated 25.4.2003 which clarified that the secondary service providers are not taxable. He relied upon the following judgments:- (a) Lee Muir Head Pvt. Ltd. Vs. Commissioner of Service Tax, Bangalore - 2009 (14) STR 348 (Tri. Bang.) (b) St. John Freight Systems Ltd. - Order-in-Appeal N .....

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..... f Lee Muir Head Pvt. Ltd. (supra) wherein the Tribunal in a similar situation as observed as under:- 8.4 As regards brokerage commission of 2% paid for booking of the export cargo, it is seen that the agents of shipping lines normally book the export cargo. The appellants actually get brokerage or commission for getting orders for the export of cargo. For this, they are getting commission of 1.75% to 2%. Even if this activity is considered as Business Auxiliary Services as they promote the taxable services of other person, it is seen that there is a Notification No.13/2003 dated 20-6-2003 which gives exemption under Business Auxiliary Services for services rendered as commission agent. Moreover, Board's Circular dated 25-4-20 .....

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