2011 (9) TMI 831 - AT - Service Tax

Appellate Tribunal rules charges for foreign port activities not subject to Service Tax.

The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellant, a Steamer Agent, stating that charges collected for activities at foreign ports ... Waiver of pre-deposit - applicant is a ‘Steamer Agent' and they are collecting amounts on behalf of the steamer for meeting the terminal expenses at different foreign ports relating to the transportation of cargo. The Commissioner has held that the activities for which the charges have been collected by the appellants fall under the ‘Business Support Services' and confirmed demand of Service Tax – Held that:- disputed amount collected by the appellant, prima facie, related to services to be rendered at the foreign ports on behalf of the master of the vessel. Under these circumstances, prima facie, the demand of Service Tax is not sustainable. waiver of pre-deposit granted The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellant, a Steamer Agent, stating that the charges collected for activities at foreign ports are not subject to Service Tax. The tribunal waived the pre-deposit of dues and stayed the recovery until the appeal is disposed of.