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2017 (12) TMI 1878 - AT - Service TaxClassification of services - Business Auxiliary Services or not - commission or a discount received, as a consideration from airlines - HELD THAT:- The respondent is engaged in the activity of freight forwarding. They are booking cargo in various airlines and pay freight for the same. The said freight is collected from shippers. The airlines pay to the respondent certain portion of such freight as a commission/discount. This is sought to be taxed in “Business Auxiliary Service.” Similar dispute before Tribunal are noted on various occasions. One such reference can be made to the Tribunal’s decision in the case of COMMISSIONER OF SERVICE TAX, NEW DELHI VERSUS M/S. KARAM FREIGHT MOVERS [2017 (3) TMI 785 - CESTAT NEW DELHI] wherein it was held that brokerage and commission received from various airlines cannot be considered as a commission earned for acting on behalf of the airlines. This is more akin to a discount or incentive provided by the airlines on the freight charges which is on principal-to-principal basis, with no knowledge of the shipper. There are no merit in the present appeal by the Revenue - appeal dismissed.
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