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2018 (3) TMI 772 - AT - Service TaxBusiness Auxiliary Service - While charging their customers towards freight charges for the cargo booked, they are collecting extra charges and collect the same from their clients - whether the service fall under Business Auxiliary Services? - Held that: - The demand is made alleging that the appellant had received consideration for pre-booking of space in airlines/ shipping lines - reliance placed in the decision in the case of Greenwich Meridian Logistics (India) Pvt. Ltd. Versus Commissioner of Service Tax Mumbai [2016 (4) TMI 547 - CESTAT MUMBAI], where it was held that The notional surplus earned thereby arises from purchases and sale of space and not by acting for a client who has space or slot on a vessel. Section 65(19) ibid will not address these independent principal-to-principal transactions of the appellant and, with the space so purchased being allocable only by the appellant, the shipping line fails in description as client whose services are promoted or marketed. Therefore, the demands, with interest thereon, and penalties are set aside. The demand cannot sustain - appeal allowed - decided in favor of appellant.
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