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2022 (6) TMI 1085 - AT - Service TaxLevy of service tax - Ocean Freight - Department was of the view that the appellant is liable to pay Service Tax on the ocean freight charges collected by them as these fall under Business Support Services - eligibility for benefit of Notification No. 04/2004 - input services / approved services have not been consumed within the SEZ unit itself. Whether the charges collected by the appellant from its customers in the nature of ocean freight are subject to levy of Service Tax under Business Support Services? - HELD THAT:- This issue has been considered in various decisions of the Tribunal wherein the Tribunal has held that ocean freight charges are not subject to levy of Service Tax under Business Support Services or Business Auxiliary Services. The relevant discussion in the case of GREENWICH MERIDIAN LOGISTICS (INDIA) PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX MUMBAI [2016 (4) TMI 547 - CESTAT MUMBAI] has 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 - Following the same, there are no hesitation to hold that the demand of Service Tax on ocean freight charges cannot sustain and requires to be set aside. Demand of Service Tax - benefit of exemption as per Notification No. 04/2004 dated 31.03.2004 denied on the ground that the input services / approved services have not been consumed within the SEZ unit itself - HELD THAT:- The very same issue was considered by the Tribunal in the case of M/S. VISION PRO EVENT MANAGEMENT VERSUS CCE & ST, CHENNAI [2018 (7) TMI 334 - CESTAT CHENNAI] where it was held that Even if the event is held outside, since the services were for advertisement of product of SEZ, the services provided is to be considered as consumed within SEZ. It also needs to be mentioned that for availing the services, the SEZ has to get these services approved by the Development Commissioner - thus, it can be safely concluded that the demand of Service Tax alleging that the appellant has wrongly availed the benefit of Notification No. 04/2004 cannot sustain and requires to be set aside. Both the issues are found to be in favour of the assessee-appellant and against the Revenue - Appeal allowed - decided in favor of appellant.
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