TaxTMI 
TaxTMI 
2015 (2) TMI 310
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....e and they are challenging the levy itself. Further, she requests that the amount already deposited should be considered as sufficient towards pre-deposit and stay may be granted. 2. The case of the department as submitted by the appellant and the submissions of the learned AR are as under: The service provided by the appellant to the steamer agent is a taxable service under the category of business auxiliary service as a commission agent. With respect to the activity (business auxiliary service) being treated as export of service , the requirement regarding foreign exchange is mandatory and is not to be relaxed and since the appellant has not complied with the requirement, the service does not quality as export. The fact th....
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....ents. The entire activity of arranging transport is undertaken by the Appellants in their own name. The Appellants merely split business proceeds and are not receiving any commission or fee from their principals. Nomenclature of any relationship should not be looked at and the actual nature of business relationship is relevant. Reliance has been placed on the following decisions: Super Poly Fabriks Ltd. v. Commissioner of Central Excise., Punjab- 2008 (10) S.T.R. 545 (SC.) Faqir Chand Gulati v. Uppal Agencies Pvt. Ltd-2008 (12) S.T.R 401 (SC) Activity performed by the appellants, if anything can only be classified as cargo handling services. The activities of cargo handling in relation to export cargo has not been defined elsewhere or....
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....business of arranging freight for export goods. There is no nexus between the alleged taxable activity and the amount sought to be taxed as consideration. Reliance is placed on Circular No. 127/9/2010-ST., dated 16.08.2010. The activity undertaken by the Appellant amounts to export of service and hence not taxable. During the relevant period services provided by a person situated in India and received by a person situated outside India was not taxable, if the service were to be categorized as Business Auxiliary Service. The brokerage of 2% per shipment received by the Appellants from the shipping lines is merely an incentive given by the shipping lines for choosing their company and is not contractually agreed consideration for any ....