TMI Blog2018 (3) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ight charges are not to be considered as commission - appeal allowed - decided in favor of appellant. - Appeal Nos. ST/507 to 510 /2010 - Final Order Nos. 40464-40467 / 2018 - Dated:- 26-2-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri D. Arvind and Shri Adhitya Srinivasan, Consultants for the Appellant Shri K. Veerabhadra Reddy, JC (AR) for the Respondent ORDER Per Bench Brief facts are that the appellants are IATA approved Freight Forwarding Agent. They are registered with the Service Tax Department under Custom House Agent Service and Business Auxiliary Service. On intelligence that appellants are not paying service tax on various charges like brokerage, di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to exporters in the capacity of a principal i.e. carrier. Thus, the appellant issues their own transport documents and is liable to pay airlines / shipping lines regardless of recovery from customer and is responsible for safe and timely transportation of cargo of the customers. It is submitted by ld. consultant that the issue is no more res integra and is conclusively decided by the following decisions:- a. Bax Global India Ltd. Vs. Commissioner of Central Excise, Chennai Final Order No. 42113/2017 dated 18.9.2017 b. Skylift Cargo Pvt. Ltd. Vs. Commissioner of Service Tax, Chennai Final Order Nos. 42242 to 42244/2017 dated 20.9.2017 c. DHL Lemuir Logistics Pvt. Ltd. Vs. Commissioner of Central Excise, Thane I 2016-TIOL-1455 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts are different, on perusal, we are convinced that the facts and the issue in these cases are identical. For better appreciation, the discussion of facts in the case of Skylift Cargo (supra) is detailed as under:- 2. The facts of the case are that assessee M/s. Skylift Cargo (P) Ltd., [hereinafter referred to as assessee] are engaged in providing Cargo Handling Service, Clearing Forwarding Service, Customs House Agent Service. They are also involved in the activities of booking domestic and international air cargo for various airlines for rendering the said bookings. Department took the view that the assessee were paying service tax under Business Auxiliary Service only on the commission amount without considering the incentive amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Market Price Adjustment etc., depending upon the terminology used by the airlines. This is evident from the CA Certificate and the subsequent period notices. (d) While the department stand is that this freight difference is earned on account of promoting an airline, whereas, there is no payout by the airlines to the assessee. On the other hand, the assessee recovers full freight from the exporters and the difference between the purchase and sale price is retained by the assessee. (e) The assessee issues House Airway Bills to their customers based on which the transportation takes place and, therefore, act in the capacity of a transporter/principal, rendering service to exporters. (f) Freight Forwarder rendering service as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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