TaxTMI 
TaxTMI 
2016 (9) TMI 585
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Since both the appeals are raise identical issue they are being disposed off by common order. 2. The relevant facts that arise for consideration are that the appellant herein a multi-model transport agency and is engaged in various activities like business of booking of cargo on behalf of airlines, shipping lines, freight forwarders/freight consolidators for which they charge an amount from the clients under various heads. The appellants are registered with the service tax department for rendering of service like clearing and forwarding agency service, storage and warehousing service, business auxiliary service (BAS), business support service and transport of goods by road service. Investigation was carried out against the appellant for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....case of Greenwich Meridian Logistics (India) Pvt. Ltd. v. Commissioner of Service Tax, Mumbai 2016-TIOL-869-CESTAT-MUM. It is his submission that on this issue, the facts are that, appellant book space in various shipping lines and sells the same space to their clients on a higher rate. The difference between the booking charges and the amounts earned by them is sought to be taxed under business auxiliary service which has been negative by the Tribunal in the case of Greenwich Meridian Logistics (India) Pvt. Ltd. (supra) and DHL Lemuir Logistics Pvt. Ltd. v. Commissioner of Central Excise, Thane I 2016-TIOL-1455-CESTAT-MUM. 4.2. As regards the service tax liability on airline incentives income, it is his submission that the said airl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....such charges in effect do not represents the consideration for services bur recovered as reimbursements for expenditure and are chargeable to only service tax after 10/09/2006. He would rely upon the decision of the Tribunal in the case of Bax Global India Ltd. v. Commissioner of Service Tax, Bangalore 2008 (9) STR 412 (Tri.-Bang.) and British Railways Board v. Customs and Excise Commissioners (1977) 221 STC for the proposition that service tax demand on the entire amount collected is not sustainable. 4.4. As regards the service tax demand on these issues in appeal ST/217/2012, it is the submission that the demand which is confirmed by invoking the extended period of limitation is not applicable as the appellant has been filing regularly r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....penses incurred in respect of freight which are covered under the category of business auxiliary service. 6. We have considered the submissions made at length by both the sides and perused the records. The issue as stated by both the sides is regarding service tax liability on the appellant under the three different heads as putforth. We consider the three service tax demands individually. Net income earned as a freight forwarder: 6.1. In this service Revenue wants to tax the appellant on the ground that he has earned additional amount from their clients on the space which has been booked by the appellant with particular shipping lines. Under this category, the appellant books space in advance in a shipping line, and as per the requireme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rds, we find that the airline incentive scheme is nothing but an amount given by the airlines to the appellant for rendering various services related to booking, preparation of bill, collection of realization by the appellant on behalf of the airlines. This portion of the findings is not contested seriously by the appellant as it is undisputed and accepted that the appellant is rendering these kind of service which, in our view, would fall under the category of promotion and marketing of airline services. Inasmuch as the appellant is encouraging the various clines for booking the space in a specific airline, we do not find any merits in the submission made by the Learned Counsel on this point and we hold on merits against the appellant on t....