TaxTMI 
TaxTMI 
2017 (12) TMI 724
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.... Service for the period October, 2009 to June, 2012 and further July, 2012 to March, 2014. The other issue is whether penalties have been rightly imposed under Section 78(1) 70(1), 71(1(d) and 77(2) of the Finance Act, 1994 and further issue is whether show cause notice have been rightly issued as regards the demand of Rs. 1,14,15,678/- which amount had been admittedly deposited by the appellant along with interest prior to the issue of show cause notice. 2. The brief facts as per the show cause notice dated 24/04/2015 are that the appellant is engaged in providing services in relation to Cargo Handling Services and are registered with the Department since the year 2004. With regard to some TDS information deducted for the year 2012 13 l....
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...., 2014 and 11th November, 2014 that they have paid interest of Rs. 5 lakhs vide the GAR challan s, Rs. 12,05,000/- by challan dated 28th October, 2014 and Rs. 2,33,000/- vide challan dated 8th November, 2014 enclosing copies thereof. Appellant also informed that their work/service pertains to filing/processing of documentation of various parties relating to the imports and exports at ICD Kanpur. That in addition they arranged containers/trucks for movement of Cargo of the parties to and from their destination, that the concerned employee of the firm who was responsible for maintenance of their books of accounts including work related to service tax, reported loss of the file and for which they had filed an FIR dated 27th January, 2014 at th....
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....f Shipping Lines and Forwarder Companies to provide services to the customers and copies of the bills/invoices issued by the Shipping Lines and Forwarder Companies to them, on the basis of which they have taken Cenvat credit, Ledger accounts in respect of Shipping Lines and Forwarder Companies for the period under consideration was also furnished. Further, Mr. Chaturvedi stated that in relation to providing services of export, the Shipping Lines and Forwarder Companies issue bills to their firm for charging Ocean Freight, Terminal Handling Charges and Bill of Lading Charges, etc. Subsequently they issued their bills to the customers for recovery of all the charges by the Shipping Lines and Forwarder Companies as well as agency charges of th....
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.... made to them in the form of brokerage. Such payment and TDS is also reflected in form 26AS as brokerage, as alleged, in the balance sheets. 4. Further some brokerage received by them from Shipping Lines/Forwarder Companies, Mr. Chaturvedi stated that the Shipping Lines Companies like M/s APL India Private Ltd., M/s Mediterranean Shipping Company, etc. in lieu of payment of ocean freight made by the appellant on behalf of their clients, granted a share from such ocean freight to the appellant, but in lieu of receiving a share of profit from Forwarder Companies in the form of brokerage, they do not provide any service. Payment of ocean freight is made by the exporter directly to these Forwarder Companies. Year wise breakup of such brokera....
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....g aggrieved the appellant is before this Tribunal. As regards brokerage, the Learned Counsel states that the issue is no longer res Integra and the same is decided in favour of the assessee by Coordinate Bench of this Tribunal in M/s Greenwich Meridian Logistics India Pvt. Ltd. versus CST 2016 (43) S.T.R. 215 (Tri.-Mumbai) wherein it was observed that each source of income must be looked at independently. Service provider is not necessarily specialist in rendering one service. Earnings of service entity may accrue from one or more services, some of which may be taxable. The Finance Act does not envisage determination of taxability from accounting entries, manner or mode of booking profit in accounts of commercial organization has no bearing....