https://www.taxtmi.com/highlights?id=100905 Freight forwarding on a principal-to-principal basis was treated as an independent transportation arrangement, not a mere intermediary or support activity. The Tribunal accepted that where the forwarder negotiates freight with carriers and customers, procures cargo space on its own account, and bears the legal responsibility and risks of transportation, the amounts recovered from customers for ocean freight and air freight cannot form part of the assessable value for business support service. On that basis, the service tax demand on those freight recoveries was held unsustainable and the impugned order was set aside. en-us Fri, 19 Jun 2026 08:24:43 +0530 Fri, 19 Jun 2026 08:24:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=100905 Freight forwarding on a principal-to-principal basis was treated as an independent transportation arrangement, not a mere intermediary or support activity. The Tribunal accepted that where the forwarder negotiates freight with carriers and customers, procures cargo space on its own account, and bears the legal responsibility and risks of transportation, the amounts recovered from customers for ocean freight and air freight cannot form part of the assessable value for business support service. On that basis, the service tax demand on those freight recoveries was held unsustainable and the impugned order was set aside. Highlights Service Tax Fri, 19 Jun 2026 08:24:43 +0530 https://www.taxtmi.com/highlights?id=100905