TaxTMI 
TaxTMI 
2018 (2) TMI 320
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....re engaged in providing Cargo Handling Service, Clearing & Forwarding Service, Customs House Agent Service. They are also involved in the activities of booking domestic and international air cargo for various airlines for rendering the said bookings. Department took the view that the assessee were paying service tax under Business Auxiliary Service only on the commission amount without considering the incentive amount. Accordingly, proceedings were initiated against the assessee by way of issue of show-cause notices. These proceedings culminated in confirmation of demands of differential service tax liability of Rs. 19,98,332/- and Rs. 93,11,332/- respectively with interest liability thereon. Penalties, which were upheld by the impugned ord....
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....the assessee recovers "full freight" from the exporters and the difference between the purchase and sale price is retained by the assessee. (e) The assessee issues House Airway Bills to their customers based on which the transportation takes place and, therefore, act in the capacity of a transporter/principal, rendering service to exporters. (f) Freight Forwarder rendering service as a principal has been recognised by CBEC in Education Guide as well as in their Circular of August 2016. (g) The matter is no longer res integra and have been held in their favour, vide a number of decisions, namely: (i) Commissioner of Service Tax, New Delhi Vs M/s. Karam Freight Movers reported in 2017 (4) Gus. S.T.L. 215 (Tri.-Del). ....
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.... issue in dispute has been settled by the Hon'ble High Court of Delhi in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. Vs Union of India reported in 2013 (29) S.T.R. 9 (Del.) which was followed by Tribunal, some of which have been cited by learned consultant as given above. We also find that in a recent decision of the Principal Bench, CESTAT, New Delhi in the case of M/s. Karam Freight Movers (supra), the Tribunal following earlier decisions in the case of (i) Aspinwall and Co. Ltd. Vs Commissioner of Central Excise, Mangalore reported in 2011 (21) S.T.R. 257 (Tri. -Bang.); (ii) Commissioner of Service Tax, Chennai Vs Lee & Muirhead Pvt. Ltd reported in 2012 (26) S.T.R. 249 (Tri-Chennai); (iii) Greenwich Meridian L....
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....is a transaction between principal to principal and the freight charges or consideration for space procured from shipping lines. The surplus earned by the respondent arising out of purchase and sale of space and not by acting for client who has space or not on a vessel. It cannot be considered that the respondents are engaged in promoting or marketing the services of any "client". 12. In the present case, it was recorded that the respondent was already paying service tax on commission received from airlines/shipping lines under business auxiliary service since 10-9-2004. The original authority recorded that the show-cause notice did not specify as to who is the client to whom the respondent is providing service. Original authority consid....