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2014 (6) TMI 591 - AT - Service TaxWaiver of pre-deposit - classification of services provided by Overseas Logistics Service Providers (OLSPs) to accomplish the overseas part of the clearing and forwarding job - business auxiliary service of not - services for providing the entire clearing and freight forwarding services including collection of cargo from the customer's place, arranging for storage in the foreign land, Customs clearance, booking space with the airline and shipping lines, landing over the cargo to airlines or shipping lines for shipment and informing the Applicant regarding dispatch of cargo. The OLSPs facilitated the business of the Applicant by providing marketing information in a reciprocal manner and by creating condition in the foreign land wherefrom a support in conducting the logistic service by providing their ready infrastructure for catering the needs of client of the Applicant. Held that:- services provided by the OLSPs to the Applicant were business auxiliary services because the activities of the OLSPs satisfied the categories appended under (vi) and (vii) of the definition of 'Business Auxiliary Service'. We find that OLSPs not only provided service of clearing and forwarding on behalf of the Applicant, but they also undertook incidental or auxiliary services like collection of payment, management or supervision job. We also find that OLSPs provided a number of services to the Applicant till they intimated M/s. TKM Global regarding dispatch of cargo and in doing so, they rendered services on behalf of the Applicant. Thus, they provided the services, incidental or auxiliary, to provide such service. Their activity in relation to the functioning of the Applicant as a clearing and forwarding agent, was surely auxiliary in nature because in absence of their services, the Applicant would not be able to fulfill their responsibility as the clearing and forwarding agent. Taxability is quite evident from the admission of the Applicant themselves. However, the Applicant made an alternate plea that they are covered under 'Cargo Handling Service' and contested a part of the demand on the ground of limitation of time. A question of limitation of time is a mixed question of fact and law, which will be considered during regular hearing of the Appeal - Applicant are directed to make a predeposit of 25% of the Service Tax amount - stay granted partly.
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