TMI Blog2010 (3) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... T/691/2009 - 210/2010 - Dated:- 10-3-2010 - S/Shri M.V. Ravindran, Member (J) and P. Karthikeyan, Member (T) Shri A.K.J. Nambiar, Advocate, for the Appellant. Shri V. Raja Ram, DR, for the Respondent. [Order per : P. Karthikeyan, Member (T)]. - The impugned order revised an order of the original authority under Section 84 of the Finance Act 1994 (the Act) and demanded service tax along with applicable interest from the appellants under the category Steamer Agents Service (SAS for short) found to have been rendered by it during the material period and imposed penalty as follows. Period Service Tax (Rs.) Penalty u/s 78 April 2001 to December 2005 Rs. 6,23,316/- Rs. 6,23,316/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person who undertakes either directly or indirectly to book or canvass for cargo is to be construed as a "Steamer Agent". The space booked by the Shipping Companies from Shipping Lines are allotted to the Shippers (importers and exporters) at a higher rate through their agent i.e., M/s. Chakiat Agencies Pvt. Ltd. Cochin. As per the Agency agreement referred to above, M/s. Chakiat Agencies Pvt. Ltd., Cochin are canvassing for cargo from Shippers (Exporters and Importers), complete documentation work including issue of Bill of Lading collecting the general freight and carriage charges in the case of pre-paid shipments or on import cargo, if any, and remit the same to their principal abroad and co-ordinate between the Shippers and the Shipping ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " The original authority, however dropped the proposal to demand tax from the appellants and to penalize them. 3. Commissioner confirmed demand of service tax and imposed penalty in the impugned order in revision with the following finding: "5. I have carefully gone through the records of the case and the submissions made by the assessee at the time of personal hearing. The main issue to be decided in this case is whether the activities undertaken by the party as per their agreement with shipping companies abroad fall under steamer agent service. The main contentions of the assessee are that they are essentially engaged in the business of freight forwarding, they are not functioning as an agent of M/s. Sea Shipping Line and M/s. Worth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 65(97) of the said Act, defines Shipping Line as 'any person who owns or charters a ship and includes an enterprise which operates or manages the business of shipping.' 7. On a perusal of the Agency Agreement, (Sl. Nos. 1, 2, 4, 5, 10 11) entered into between M/s. Sea Shipping Line, U.S.A and M/s. Chakiat Agencies Pvt. Ltd. it is seen that the former is operating or managing the business of shipping as defined under Section 65(97) of the said Act and hence they will rightly fall under the definition of "Shipping Line". On going through Sl. No. 1 of the aforementioned agreement, it is noticed that M/s. Sea Shipping Line has appointed M/s. Chakiat Agencies Pvt. Ltd. as their agents and the services rendered by the latter as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Finance Act, 1994 defines the taxable service as "any service provided or to be provided to a shipping line, by a Steamer Agent in relation to a ship's husbandry or dispatch or any administrative work related thereto as well as booking, advertising or canvassing of cargo, including container feeder services." We find that the assessee apparently rendered a service falling under SAS to the shipping lines for whom it booked cargo space. The assessee is prima facie, liable to pay tax on the commission it received. 6.2 We note that the failure to pay tax arose on account of a different view than that of the department held by the assessee. The original authority held the same view as held by the assessee. There is no finding of mala ..... X X X X Extracts X X X X X X X X Extracts X X X X
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