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Molight Shipping Services P. Ltd. Versus Commissioner of Central Excise, Chennai

2017 (9) TMI 944 - CESTAT CHENNAI

Business Auxiliary service - Steamer Agent services - non-payment of service tax on considerations which should form part of taxable value under the category of "Steamer Agent Service" and "Business Auxiliary Service" - period from 1.10.2001 to 31.3.2006 - Held that: - the Tribunal examined similar issue in DSP Merrill Lynch Ltd. Vs CST Mumbai [2016 (2) TMI 221 - CESTAT MUMBAI] - The Tribunal held that amount of write backs are those which are yet to be claimed by the assessee. These amounts are .....

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sidered for tax liability by the appellant. They calculate tax liability as per the date of brokerage, accounting, and there is no reason to infer infirmity in such action. - Brokerage Rate - Held that: - The services rendered to shipping line are rightly taxable under "Steamer Agents Service". Appellant admits this legal position. However, their claim is in respect of services rendered to other steamer agents. The same is not liable to be taxed as 'Steamer Agent Service'. At best, it could .....

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ce is incidental to any of the services listed from clauses (i) to (vi) under BAS - tax liability set aside. - Time limitation - Held that: - jurisdictional officer has endorsed the ST-3 returns which can happen only on due satisfaction of verification of all documents and not on mere perusal of the returns - demand for extended period not sustained, and limited to normal period only - penalty also set aside. - Appeal allowed - decided partly in favor of appellant. - Appeal No. ST/469/20 .....

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pments for the clients. They are registered with service tax department for discharging service tax under the category of "Steamer Agent Service". The dispute in the present appeal relates to the period from1.10.2001 to 31.3.2006. The proceedings are with reference to non-payment of service tax on considerations which should form part of taxable value under the category of "Steamer Agent Service" and "Business Auxiliary Service". These are mainly relating to retaine .....

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to each type of consideration now sought to be taxed, contested the demand on limitation also. The show cause notice in the present case dt. 19.4.2007 was issued covering the period 1.10.2001 to 31.3.2006. 4. On the merits of the case, Ld. consultant submitted that there are four categories of amounts namely, balance lying in customers' account for more than 2 years, rounded off/small amount lying customers' account, excess collection from the importers in respect of container damage ch .....

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tuation, ld. consultant submitted that as per the understanding with their client (liner), they will get percentage commission on dollar terms. However, there is one or two weeks difference in getting realization and during the period any fluctuation exchange rate will show in the quantum in rupee terms. This may be positive or negative depending on the fluctuation. Revenue only picked up the case where due to exchange rate fluctuation they have realized the amount in rupee terms on the higher s .....

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e is from other steamer agents for helping them in getting cargo booking in other liners. The steamer agent service is taxable only in respect of service rendered to a liner. The service rendered to other steamer agents cannot be considered for tax liability under "Steamer Agents Service". If at all, it should be levied to tax under "Business Auxiliary Service" which in the present case is not invoked. 7. Ld. Consultant submitted that demand under Business Auxiliary Service w .....

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Superintendent. In this regard, h produced copies of ST-3 returns verified by the Superintendent. When the assessment was completed by the jurisdictional officer after due verification of documents, suppression cannot be invoked in the present case. 9. The Ld. A.R supported the findings of the lower authorities. He submitted that appellant did not establish his claim with supporting details before the lower authorities. The excess amounts retained by the appellant are nothing but consideration f .....

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examined similar issue in DSP Merrill Lynch Ltd. Vs CST Mumbai 2016 (44) STR 436 (Tri.-Mumbai) and Grey Worldwide (I) Pvt. Ltd. Vs CST Mumbai 2015 (37) STR 597 (Tri.-Mumbai). The Tribunal held that amount of write backs are those which are yet to be claimed by the assessee. These amounts are payable to the client when the claims are lodged. Accordingly, they cannot be considered as consideration received towards services rendered. 13. Regarding exchange rate, we note that appellants are uniform .....

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rate, appellant produced a certificate dt.9.3.2009 of a Chartered Accountant to indicate that such brokerage payment is on two different headings. It is received from shipping line and also from other steamer agents. The services rendered to shipping line are rightly taxable under "Steamer Agents Service". Appellant admits this legal position. However, their claim is in respect of services rendered to other steamer agents. The same is not liable to be taxed as 'Steamer Agent Servic .....

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