https://www.taxtmi.com/caselaws?id=751293 CESTAT NEW DELHI ruled in favor of appellant in service tax recovery case involving business auxiliary services for cargo space transactions. The tribunal held that when appellant purchases cargo space from airlines and resells to exporters, no service tax applies as appellant acts as independent business entity, not agent. There exists no privity of contract between airlines and exporters. Appellant buys bulk cargo space at lower rates and sells at profit to exporters. This constitutes sale-purchase arrangement, not taxable service provision. Commissioner's demand was based on erroneous impression that non-permanent ownership creates taxable service. Following established precedents, tribunal set aside impugned orders and allowed appeals. en-us Wed, 10 Apr 2024 00:00:00 +0530 Fri, 12 Apr 2024 10:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751293 CESTAT NEW DELHI ruled in favor of appellant in service tax recovery case involving business auxiliary services for cargo space transactions. The tribunal held that when appellant purchases cargo space from airlines and resells to exporters, no service tax applies as appellant acts as independent business entity, not agent. There exists no privity of contract between airlines and exporters. Appellant buys bulk cargo space at lower rates and sells at profit to exporters. This constitutes sale-purchase arrangement, not taxable service provision. Commissioner's demand was based on erroneous impression that non-permanent ownership creates taxable service. Following established precedents, tribunal set aside impugned orders and allowed appeals. Case-Laws Service Tax Wed, 10 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751293