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2019 (3) TMI 114 - AT - Service TaxClassification of services - Business auxiliary services or not - appellants were booking space for cargo transportations in airlines/ships and paid the charges for the same. While charging their customers towards such freight charges, the appellants bill/collect extra charges in excess of the charges paid to the airlines/ships. Demand of ₹ 1,92,04,675/- and ₹ 36,00,891/- with interest payable under the category of Business Auxiliary Service - Held that:- The Tribunal in the case of M/s. Freight Systems (India) Pvt. Ltd. Vs. Commissioner of G.S.T. & Central Excise, Chennai South Commissionerate [2018 (7) TMI 333 - CESTAT CHENNAI], held that the demand of service tax on such freight charges under Business Auxiliary Services is unjustified - demand set aside. Penalty - Demand of ₹ 15,53,701/- with interest on excess charges - Held that:- The said demand with interest has been paid up voluntarily by the appellant during the Department audit. Ld. Consultant submits that the appellant is not contesting the said demand - the matter as regards penalty, it is held that there cannot be any penalty in this case since the amount was already paid up on being pointed out - demand upheld - penalty set aside. Demand of ₹ 2,33,285/- on commission received from steamer agents/airlines - time limitation - Held that:- The demand of ₹ 2,33,285/- on airline/steamer commission is hit by limitation since it is even beyond the extended period of limitation that can be covered in the Show Cause Notice dated 05.04.2010 - demand set aside. Appeal allowed in part.
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