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2024 (1) TMI 641 - AT - Service TaxLevy of Service Tax - Business Auxiliary Service - income earned by the appellant on Ocean Freight - HELD THAT:- The logistic companies buy cargo space in shipping lines and thereafter, sell the space to their customers. In various decisions, it has been found that the said activity is purchase and sale of space in Ocean Freight. In identical circumstances, in the case of GREENWICH MERIDIAN LOGISTICS (INDIA) PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX MUMBAI [2016 (4) TMI 547 - CESTAT MUMBAI] observed 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) of Finance Act, 1994 will not address theses independent principal-to-principal transactions of the appellant and, with the space so purchases being allocable only by the appellant, the shipping line fails in description as client whose services are promoted or marketed. There are no merit in the impugned order the same is set aside - the appeal is allowed.
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