2018 (3) TMI 631

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....es for the period 16.08.2002 to 31.03.2006. Further, certain cenvat credit availed by the appellant on input services were also ordered to be reversed. Penalties under Section 76 & 78 of the Finance Act, 1994 were also imposed on the appellant. 3.1 Contesting the findings of the impugned order on two issues, the Ld. Counsel submitted that there is no service tax liability on the appellant under 'Cargo Handling Service' and 'Business Auxiliary Service'. The nature of work undertaken by the appellants is briefly mentioned in the impugned order itself. They are a consolidation freight forwarding agent dealing with import / export cargo. They enter into agreement for similar activities abroad. As per the arrangements, when a ca....

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....ion and freight forwarding. The original authority summarily presumed that these activities are cargo handling services and accordingly proceeded to confirm the service tax liability. 3.3 Regarding service liability under BAS, it is submitted that the said service tax was confirmed on the incentives received from the liners based on the quantum of freight business made available to the liners. This is actually a sort of profit on freight booking and there is no business promotion of any liner to any particular client. It is submitted that this issue stands settled in favour of the appellant by Tribunal's decision in the case of Bax Global India Ltd. Vs CST Chennai vide Final Order No.42113/2017 dt. 18.09.2017. 3.4 Regarding other two ....

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....and charges collected by the appellants from the client have already been explained by the Id. counsel and reproduced above. On perusal of the activities for such consideration, it is clear that none of them involve handling of cargo physically and these are activities which are mainly monitoring, managing the consolidation / de-consolidation of multiple / bulk cargo for which various charges are collected. We could not find any specific activity which is involving physical handling of import cargo by the appellants. No evidence to that effect has been discussed in the impugned order also. The impugned order infer that these fees / charges are to be attributed to the I cargo handling service' without identifying the presence of physical....