2018 (6) TMI 524

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....es such as booking and transportation of cargo, preparing bills, collecting them and realizing payments etc. it was observed that the respondent was paying service tax only on the commission and was not paying service tax on the additional amount received as incentives based on the volume of transaction for the activity of forwarding cargo through the airlines. Show cause notice was issued proposing to demand service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, interest and penalties. In appeal, Commissioner (Appeals) set aside the demand, interest and the penalties. Hence, department is now before the Tribunal. 2.  On behalf of the appellant, Id. AR ....

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....argo goods has been decided by the Tribunal in the decisions cited by the Ide Counsel for the respondent. The Tribunal has held the issue in favour of the respondent. The relevant portion of the decision in the case of M/s. Continental Carriers (supra) is reproduced as under:- "5. We have heard both sides and perused the material available on record. We note that the tax liability on similar activities under the category of 'Business Auxiliary Service' has already come up for consideration before the Tribunal in the above mentioned cases and the Tribunal in the case of DHL Logistics (P) Ltd. (supra) has observed that : "4.2. Demand has been made on service tax under the head of Business Auxiliary Service for the revenue earned a....

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.... and depending on the volume of the space bought by the appellant from the airlines they received the commission/incentive. The appellants are not buying and selling space on the airline on behalf of their client but on their own behalf. To consider the activity of buying and selling the taxable activity under the head of BAS, the same should be done on behalf of the client. Thus, if the appellants were selling the space on carrier from the airline directly to the exporters without themselves purchasing the space then it could have been considered as an activity involving promotion of sales. In the instant case the appellant are directly buying themselves and thereafter selling the same to the exporters. In this activity they are receiving ....