2009 (11) TMI 157

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....tainers, labour charges for stuffing the containers, facilitating clearance of imported cargo and also arranging ocean transport. The appellants paid the required charges to the service providers for various services mentioned above in the port area and recovered the same from the customers by adding their service charges. Initially they had taken registration as a CHA and paid the service tax. After taking the registration they were paying service tax on the charges received by them excluding the actual cost. The department took a stand that in the absence of having a licence, appellant cannot be treated as a CHA. Thereafter, verification of records, investigation etc., show-cause notice was issued proposing to classify the services render....

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....not clearing and forwarding agency service at all in view of the fact that they do not undertake any clearing activity. Hon'ble High Court has held that unless a person undertakes both clearing and forwarding activities, the liability of service tax is not attracted. He also relies upon the decision of the Tribunal in DHL Lemuir Logistics (P.) Ltd. v. CST [2009] 22 STT 398 (Bang. - CESTAT) in support of his contention that all the activities conducted by the appellants cannot be categorized under one category and charged to service tax. Assuming but not accepting that service tax is leviable, the total amount of tax that may be payable would not exceed Rs. 8,00,000 in view of the fact that the service charges received by them is a small per....

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.... the decision of Larger Bench of the Tribunal in Medpro Pharma (P.) Ltd. case was not available. We find that the Commissioner has passed a very detailed order and has discussed different activities carried out by the appellants. She has also considered why the appellants cannot be considered as an agent. At the same time we also take note of the fact that substantial portion of the total amount collected by the appellants relates to ocean freight which itself is not liable to service tax at all. The decision of the Tribunal in the case of DHL Lemuir Logistics (P.) Ltd. (supra) relating to air freight is applicable to the facts of this case also and therefore the decision of the Commissioner that ocean freight also should be included for th....