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2018 (8) TMI 1682 - AT - Service TaxBusiness Auxiliary Services - Steamer Agents Services - During the course of audit, Revenue found that there was a huge difference between the total receipts and the amounts on which service tax was paid - Revenue was of the view that the amounts are liable to payment of service tax under the category of BAS - Held that:- Most of the amounts received by the appellant for which no service tax has been paid are in the nature of reimbursements by the customers to cover the expenses incurred by the appellant for activities carried out on behalf of the customers such as obtaining the services abroad, clearance of goods from port and transporting the same to the customer’s premises, CFS charges, CHA charges, Fumigation charges etc. Reliance placed in the Apex Court decision in the case of UOI Vs. Intercontinental Consultants and Technocrats Pvt. Ltd. [2018 (3) TMI 357 - SUPREME COURT OF INDIA], where it was held that service tax is to be paid only on the services actually provided by the service provider - in the present case, amounts reimbursed to the appellant for various miscellaneous services in India as well as abroad which were contracted by the appellant on behalf of the customers cannot be levied to service tax - demand set aside. Amounts recovered by the appellant from the customers towards ocean freight payable to the foreign shipping lines - Held that:- The levy of service tax on the freight elements, in respect of the discounts enjoyed by the appellant in payment of freight charges set aside - reliance placed in the case of CCE, TIRUNELVELI VERSUS M/S. DIAMOND SHIPPING AGENCIES PVT. LTD. [2018 (1) TMI 169 - CESTAT CHENNAI] - demand of service tax made on the portion of freight and discounts set aside. Appeal allowed - decided in favor of appellant.
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