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2019 (4) TMI 534 - AT - Service TaxBusiness support services - the appellant is purchasing space from the shipping lines and selling it to the exporters for profit - Held that:- It is not in dispute that the appellant herein is purchasing the space from the shipping lines and then is selling the same to exporters. It is the case of the revenue that this amounts to acting as an intermediary for helping the business of the shipping lines and therefore they are liable to pay service tax on business auxiliary services on the profit which they receive. It is the case of the appellant that this is a deal on principal to principal basis between them and the shipping lines and again between the exporters and them. They are not acting as an agent. They could purchase the space for a lower price and sell it at a higher price and thereby earn profit. On the other hand, if they failed to sell the space to exporters, after purchasing from the shipping lines, they may incur a loss. They are not receiving any commission whatsoever from the shipping line or from the exporters. In an identical case, in the case of Phoenix International Freight Service Pvt Ltd [2016 (9) TMI 585 - CESTAT MUMBAI], the Tribunal has held that buying and selling space on ships does not amount to rendering a service and any profit or income earned through such transactions is not leviable to service tax. The demand of service tax, interest and penalties are liable to be set aside - appeal allowed - decided in favor of appellant.
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