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2018 (5) TMI 409 - AT - Service TaxDemand of service tax - CHA service - incentives received from various airline / shipping liners @ 2% of the basic freight, in the name of brokerage - Held that: - identical issue decided in the case of Lee & Muir Head Pvt. Ltd. Vs. Commissioner of Service Tax, Bangalore [2008 (10) TMI 131 - CESTAT, BANGALORE], where it was held that the brokerage commission of 2% paid for booking of export cargo cannot be taxed under the category of Business Auxiliary Services. It is also seen that the activity of the appellant as a custom house agent is to provide services to importers/exporters and the disputed activity was only a facility arranged by them to their clients. The appellant has no obligation to arrange transport of cargo through a particular shipping liner - the amount received cannot fall within the category of ‘commission’ so as to be subjected to levy of service tax. Demand not sustainable - appeal allowed - decided in favor of appellant.
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