TMI Blog2017 (9) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellants are suffering with the transaction loss, then certainly they are not the agent. CBEC vide Circular No.197/7/2016-ST dated 12.08.2016 has clarified that a freight forwarder, when acting as a principal, will not be liable to pay service tax when the destination of the goods is from a place in India to a place outside India. Appeal allowed - decided in favor of assessee-Appellants. - Service Tax Appeal No.56240 of 2013 with Service Tax Stay Application No.56700 of 2013 - ST/A/55335/2017-CU[DB] - Dated:- 20-7-2017 - Mr. (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) (Rep by Sh. Rahul Tangri, Adv.) - for the Appellant (Rep. by Sanjay Jain, DR) - for the Respondent ORDER Per: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading of freight forwarding. A freight forwarder is a person or firm that arranges to pick up or deliver goods on instructions of a shipper or a consignee from or to a point by various necessary conveyances and common carriers. He also submits that the assessee-Appellants buy the cargo space from the airlines and sell the same to ultimate shipper/consignor. The present arrangement is entirely different from that of a selling agent or commission agent who is engaged by an exporter to export his goods. He further submits that the assessee-Appellants were never appointed by the airlines as their agent. Principal to principal nature of the transaction is evident from the documentation involved in the present matter which has been conveniently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nally, he justified the impugned order. 6. We have heard both sides and gone through the material available on record. It may be mentioned that in the case of Greenwich Meridian Logistics (I) Pvt. Ltd. (supra), the Tribunal has observed that, in the shipping line there is possibility of trading in space or slots on vessels. It cannot be stated that such trading was figment and only freight was transacted. The Tribunal further observed that : 12. The appellant takes responsibility for safety of goods and issues a document of title which is a multi-modal bill of lading and commits to delivery at the consignee s end. To ensure such safe delivery, appellant contracts with carriers, by land, sea or air, without diluting its contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent whose services are promoted or marketed. From the record, it also appears that the assessee-Appellants were never appointed by the airlines as Commission Agent . They have purchased the space in bulk and paid to airlines if the space is vacant, and have also suffered the loss. When the assessee-Appellants are suffering with the transaction loss, then certainly they are not the agent. 7. Further, the Central Board of Excise Customs (CBEC) vide Circular No.197/7/2016-ST dated 12.08.2016 has clarified that : 2.2 The freight forwarders may also act as a principal who is providing the service of transportation of goods, where the destination is outside India. In such cases the freight forwarders are negotiating the terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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