2023 (5) TMI 100 - AT - Service Tax

Levy of Service tax - cargo handling service - ocean freight - profit/mark up on ocean freight charges, treating it as integral part of cargo handling services - disputed period is from 01.10.2008 to 31.3.2013 - demand alongwith interest and equal penalty - HELD THAT:- The issue is no more res integra as the same has been decided in catena of decisions, the latest being the judgment in the case of M/S. TIGER LOGISTICS (INDIA) LTD. VERSUS COMMISSIONER OF SERVICE TAX-II, DELHI [2022 (2) TMI 455 - CESTAT NEW DELHI] where it was held that This activity is a business in itself on account of the appellant and cannot be called a service at all. Neither can the profit earned from such business be termed consideration for service.

The Tribunal in an earlier decision the case of GREENWICH MERIDIAN LOGISTICS (INDIA) PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX MUMBAI [2016 (4) TMI 547 - CESTAT MUMBAI] 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.

Demand set aside - appeal allowed - decided in favour of appellant.