TaxTMI 
TaxTMI 
2010 (3) TMI 398
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....Service (SAS for short) found to have been rendered by it during the material period and imposed penalty as follows. Period Service Tax (Rs.) Penalty u/s 78 April 2001 to December 2005 Rs. 6,23,316/- Rs. 6,23,316/- This stay application filed by M/s. Chakiat Agencies (P) Ltd. seeks waiver of pre-deposit and stay of recovery of the above dues. 2. The impugned activity as explained in the order of the original authority is as under. "The shipping companies abroad book space from a Shipping Line (ship owner or the person who charters a ship) under a service contract for rock bottom rates and then allot this space to Shippers (Exporters or Importers) at a higher rate through the Agents appointed by them i.e., M/s. Cha....
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....ue of Bill of Lading collecting the general freight and carriage charges in the case of pre-paid shipments or on import cargo, if any, and remit the same to their principal abroad and co-ordinate between the Shippers and the Shipping Lines in connection with the transportation of cargo at Cochin Port. Therefore, the activity undertaken by the assessee is very well covered within the ambit of Steamer Agent Service and in every aspect the assessee is acting as an agent of the Shipping Companies abroad. As per Section 67 of the Act, the value of any taxable service shall be the gross amount charged by the service provider of such service provided, or to be provided by him. The assessee is getting service charges from their foreign principal as....
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....ies abroad fall under steamer agent service. The main contentions of the assessee are that they are essentially engaged in the business of freight forwarding, they are not functioning as an agent of M/s. Sea Shipping Line and M/s. Worthmore Forwarding Inc., those two companies are their trading partners who book space from shipping lines abroad, they directly book space with any shipping line on the basis of availability and as per requirements of the shipper, they are not canvassing cargo on behalf of any shipping line, the relationship between M/s. Sea Shipping Line and M/s. Worthmore Forwarding Inc. is that of trading partners, the freight forwarder does not represent any shipping lines/ship owner, the service becomes taxable only when i....
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....ion of "Shipping Line". On going through Sl. No. 1 of the aforementioned agreement, it is noticed that M/s. Sea Shipping Line has appointed M/s. Chakiat Agencies Pvt. Ltd. as their agents and the services rendered by the latter as per the said agreement (Sl. Nos. 1, 2, 5 & 11) fall under 'Steamer Agents Service' as per section 65(105) (i) of the said Act. Therefore, M/s. Chakiat Agencies Pvt. Ltd. can rightly be called as 'Steamer Agent' under section 65(100) of Finance Act, 1994." 4. Heard both sides. 5. The argument of the appellant is that it did not render any service to any shipping line to attract levy under Steamer Agents' Service. The appellants had entered into an agreement with its trading partners for sale of cargo space on....