TaxTMI 
TaxTMI 
2018 (7) TMI 333
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....tinations. In the case of export of goods, they undertook loading of goods meant for export, storing the same in Container Freight Stations/Airport, processing the shipping bills, filing and stuffing the cargo in the containers etc. Similarly, in the case of import of cargo, the appellant undertook filing of Bills of Entry, processing the bills of entry, attending to the clearance of the consignment from the CFS/Airport after completing all the formalities. Apart from the charges for above services, the appellant also collected cost towards freight which was, according to the department, nothing but charges for the transportation of cargo from the customer's premises to the desired destinations or vice versa as per the directions of the customers. Show cause notice was issued alleging that the freight charges collected by the appellant is liable to service tax under the category of BAS for the period 2004 - 2006 and under the category of BSS for the period 2006 - 2010. After due process of law, the original authority confirmed the demand under BAS for the entire period along with interest and also imposed penalties. Another ground on which the demand was confirmed is that the s....
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....he findings in the impugned order. 8. Heard both sides. 9. The demand has been raised alleging that the freight charges collected by the appellant forms part of taxable value under BAS for the period 1.7.2003 to 30.4.2006 and would fall under the category of BSS with effect from 1.5.2006. The issue whether the said charges collected by the appellant would fall under BAS has been decided in the cases relied upon by the ld. counsel for the appellant The relevant portion of the decision in the case of Skylift Cargo Pvt. Ltd. (supra) is as under:- "3. When the matter came up for hearing learned consultant Shri D. Aravind made oral and written submissions, which can be summarised as follows:- (a) During the course of freight forwarding, the assessee book cargo space in airlines. Once the space is booked, the assessee receives 5% commission from airlines for issuing Airway Bill and other connected documents on behalf of airlines and making cargo ready for carriage. On this, service tax is being paid. This 5% commission is uniform by virtue of a tripartite agreement between all airlines, IATA and the Freight Forwarders and hence, there is no need for assessee to promote any pa....
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....e department is in appeal no.ST/41474/2013. (i) What has been termed as an incentive is nothing but freight difference, the fact of which has been certified by the CA certificate. The subsequent notices issued by the department also vindicate this stand. xxxx xxxx xxxx xxxx "11. On the second issue regarding the service tax liability of the respondent under BAS, we find that the impugned order examined the issue in detail It was recorded that the income earned by the respondent to be considered as taxable under any service category, should be shown to be in lieu of provision of a particular service. Mere sale and purchase of cargo space and earning profit in the process is not a taxable activity under Finance Act, 1994. We are in agreement with the findings recorded by the original authority. In this connection, we refer to the decision of the Tribunal in Greenwich Meridian Logistics (1) Pvt. Ltd. CST, Mumbai - 2016 (43) S.T.R. 215 (Tri. - Mumbai) The Tribunal examined similar set of fact and held that the assessee often, even in the absence of shippers, contract for space or slots in vessels in anticipation of demand and as a distinct business activity. It is a tran....
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.... the decisions above, we find that the demand of service tax on freight charges under BAS is unjustified and requires to be set aside, which we hereby do. 11. The issue whether the services rendered to SEZ unit is eligible for exemption as per Notification No. 4/2004 has been considered by the Tribunal in the decision of Vision Pro Event Management (supra). The relevant portion of the order of the Tribunal is as under:- "5.1 The issue is whether the appellants are eligible for the service tax exemption under the Notification No. 4/2004 for the services rendered to SEZ unit. For better appreciation, the relevant part of the notification is reproduced as under:- The Central Govt. being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service of any description as defined in clause (105) of Section 65 of the said Act provided to a developer of Special Economic Zone or a unit (including a unit under construction) of Special Economic Zone by any service provider for consumption of the services within such Special Economic Zone, from the whole of service tax leviable thereon under Section 66 of the said Act, The doubt has arisen as the no....