TaxTMI 
TaxTMI 
2018 (2) TMI 317
X X X X Extracts X X X X
X X X X Extracts X X X X
....t Forwarding and other related services. The present dispute is with reference to two no. of items generated by appellants out of providing services to independent cargo exporters to the overseas buyers, namely, Container Freight Services (in short, "CFS") and Cargo Receipt (in short "CR") Issuance Charges received by them from the Indian exporters of cargo. It appeared to the department that appellants are providing the services on behalf of overseas logistics company appointed by the overseas buyer and hence service tax liability would arise under the heading of Business Auxiliary Services. In adjudication proceedings, vide the impugned order dated 26.02.2008, the lower authority has confirmed differential tax liability of Rs. 1,12,03,673....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in relying on clause 3.1 of the Agreement, dated 28^th Dec. 2002, to hold that consideration received by the appellant is on behalf of the foreign company. The agreement authorises only the appellants to provide the impugned services and further authorises them to charge and retain the service fee collected as their own income. Only in a situation where income earned by the appellants are insufficient to meet the costs and 5% margin of the appellant's business in India that will enable the foreign logistics company recoup the difference. This does not mean that the charges are payable by the foreign logistics company to the appellants in the normal circumstances. If that was to be so, then the charges for the impugned services would ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ommissioner of Service Tax (Adjn.,), Mumbai reported in 2013 (31) S.T.R. 453 (Tri. -Mum.). (g) The "Logistics Management Services" of the nature provided by the appellants and impugned in the present case were specifically covered under the category of Support Services for Business or Commerce (BSS), which was introduced for the first time on 1^st May, 2006. As a matter of caution and based on the advisory received from the Industry Association, the appellants commenced paying service tax on these services with effect from 1^st May, 2006 (for CFS charges as 'BSS") and from 1^st Feb. '06 (for CR issuance charges as "BAS". The Revenue has never objected to the payment by the appellants under the categories. (h) Even assuming wit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....liary Service and, therefore, the impugned order does not call for any interference. 4. Heard both sides and have gone through the facts. 5.1 From the definition of Business Auxiliary Service what comes to the fore is that "the services rendered has to be in relation to promotion or marketing or sale of goods or services provided or provided by client or procurement of goods or services or provision of services on behalf of the client or any service incidentally to any such activity." 5.2 Thus, to qualify as a service provider of Business Auxiliary Service, the services have to be provided which would augment or enhance or supplement the business of the client, which would obviously result in improvement of the business income/prof....