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2020 (2) TMI 282 - AT - Service TaxBusiness Support services - activity of purchasing space on ocean going vessels from shipping companies and selling the same to various exporters for export of goods - HELD THAT:- There is no dispute about the activity being carried out by the appellant i.e. they are engaged in purchase and sale of space on ocean going vessels. In the transaction of purchase and sale of space, they earn some profit for the reason that in some cases, the sale price of the space to various exporters is more than the purchase price of the space paid to shipping companies. There is no service involved in such transaction as the purchase and sale of the space is an activity of sale and purchase and hence, not liable to service tax. This issue has been considered by various judgments time and again and this Tribunal held that since the activity of sale and purchase involves no service hence the profit earned on sale of space is not liable to service tax. The issue is no longer res-integra and in all the judgments it has been categorically held that any amount charged for space on ocean going vessels, over and above the purchase price is not liable to service tax - Appeal allowed - decided in favor of appellant.
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