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2016 (10) TMI 680 - AT - Service TaxLevy of service tax - taxability of secondary services - commission received for booking of cargo space in various airlines as well as shipping lines - Business Auxiliary Services - Section 65 (19) of the Finance Act, 1994 - whether appellant is justified in holding that no service tax will be liable on the brokerage/commission received by them in the light of the CBEC Circular No. 56/5/2003-ST dated 25th April, 2003? - Held that: - if the secondary services gets consumed with the services that are being exported, no service tax will be liable on such secondary services. It is not being disputed that the activity undertaken by the appellant is a secondary service rendered to the primary service provider namely the airlines towards export of cargo services. To this extent, the CBEC Circular covers the issue in favor of the appellant. The decision in the case of Lee & Muir Head Pvt. Ltd. vs. CST, Bangalore [2008 (10) TMI 131 - CESTAT, BANGALORE] relied upon where it was held that the appellants are secondary service providers for the shipping lines, brokerage commission of 2% paid for booking of export cargo cannot be taxed under the category of 'Business Auxiliary Services'. Demand not sustainable - interest and penalty also fails - appeal allowed - decided in favor of appellant.
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