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2013 (8) TMI 857 - AT - Service TaxBusiness Auxiliary service (BAS) - import as well as export of these items on behalf of various traders/merchants - sale of goods on high sea basis - mark-up ranging from 1% to 1.5% of the value of the goods - The Revenue was of the view that the applicants are rendering services of import and export to the customers and, therefore, they are liable to Service Tax under the category of “Business Auxiliary Services”. - Held that:- The transaction was one of the Sale and Service Tax liability was not - Following INDIAN OIL CORPORATION LTD Versus COMMISSIONER OF CENTRAL EXCISE, GOA [2012 (2) TMI 319 - CESTAT, MUMBAI] - From perusal of the import documents as well as invoices it was evident that the transaction was one of trading or sale - The mark-up/trade margin charged by the appellant was also subject to customs duty as part of the transaction value - there was no reason why the same part of the transaction value should be taken out of the customs transaction and subjected to Service Tax under the guise of Business Auxiliary Services - The Board's Circular dated 11.05.2004 also clarified that the customs duty liability was to be discharged on the value inclusive of trade margin in the case of High Seas Sales transaction - pre-deposit of the dues was waived adjudged against the appellant and stay recovery thereof during the pendency of the appeal – stay granted. Condonation of Delay - The delay occurred due to fact that the appellant was directed to file separate appeals instead of a composite appeal which was filed in time - Considering the reason stated as satisfactory the COD application was allowed.
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