2017 (7) TMI 341

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.... the amount credited to 'airline incentive-AE' in their books of accounts. It is been held by the adjudicating authority that these are consideration for having rendered 'business auxiliary service', taxable under section 65 (105) (zzb) of Finance Act, 1994, and specifically attributable to commission received for 'promoting or marketing the service of a client' which renders it within the scope of the definition of the service in section 65(19) of Finance Act, 1994. 2. Learned Counsel for appellant informs us that, in identical circumstances, the Tribunal has held in Greenwich Meridian Logistics (India) Pvt Ltd v. Commissioner of Service Tax, Mumbai [2016-VIL-264-CESTAT-MUM-ST] that this income cannot be associated with the activity of ....

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....bunal held. '9. ... ... ... Summing up, we find that the appellants had already discharged the duty liability in respect of the Customs House Agent activities undertaken by him. As regards all the other activities, we find that they do not relate to customs house agent activities. Even if any profit has been made in respect of those activities, they cannot be subjected to service tax in view of the Apex Court decision in the Baroda Electricity Meters Ltd. case ...' xxxxxxxx 9. The description of the taxable service in Section 65(105) of Finance Act, 1994 as well as the definition, if any, of the terms therein are the primary determinant for taxation of any service. From the observation of the Hon'ble High Court of Gujarat sup....

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....hippers, contract for space or slots in vessels in anticipation of demand and as a distinct business activity. Such a contract forecloses the allotment of such space by the shipping line or steamer agent with the risk of non-usage of the procured space devolving on the appellant. By no stretch is this assumption of risk within the scope of agency function. Ergo, it is nothing but a principal-to-principal transaction and the freight charges are consideration for space procured from shipping line. Correspondingly, allotment of procured space to shippers at negotiated rates within the total consideration in a multi-modal transportation contract with a consignor is another distinct principal-to-principal transaction. We, therefore, find that fr....