Export-linked brokerage for container arrangements treated as non-taxable secondary service under service tax principles.

Brokerage earned by a CHA for arranging containers through a steamer agent for exporters was treated as a secondary service connected with export activity, and therefore outside service tax under the principle that services ultimately consumed or merged with exported services are not taxable. Relying on Circular No. 56/5/2003 and prior Tribunal authority, the document states that such brokerage was not liable to service tax as Business Auxiliary Service.

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Issues: Whether brokerage received for arranging containers through a steamer agent for exporters was liable to service tax as Business Auxiliary Service.

Analysis: The appellant acted as a CHA and arranged containers for exporters through a steamer agent, receiving brokerage for that activity. The service was treated as a secondary service used in connection with export activities. Circular No. 56/5/2003 dated 25.04.2003 states that where secondary services ultimately get consumed or merged with services exported, no service tax is leviable on such services. Support was also drawn from prior Tribunal authority following the same principle.

Conclusion: The brokerage received for arranging containers was not liable to service tax.

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