2018 (10) TMI 1558

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....ok the view that appellants should have been paying service tax also on the freight charges reimbursed by them from their customers charged over and above the freight amount payable to the airline companies. Accordingly, SCN No.35/2014 dt. 29.10.2014 proposing service tax liability of Rs. 19,63,74,437/- for the period July 2012 to March 2013 as also SCN No.52/2015 dt. 17.04.2015 proposing service tax liability of Rs. 35,80,62,114/- for the period April 2013 to March 2014 along with interest thereon and also proposing imposition of penalty under various provisions of law were issued to the appellants. In adjudication, vide common order dt. 15.12.2015 (impugned order), the adjudicating authority confirmed reduced demand of Rs. 17,47,72,549/- ....

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....which is incorrect. Reliance is placed on Hon'ble Delhi High Court in the case of - INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT.LTD. Vs UNION OF INDIA & ANR - 2013 (29) S.T.R.9 (Del.) Wherein it was held that the Double Taxation must be clearly provided for and intended; at any rate, double taxation cannot be enforced by implication (Para 11 of the said Order). The aforesaid Order has also been upheld by the Hon'ble Apex Court in Union of India and Anr. Versus M/s.Intercontinental Consultants And Technocrats Pvt. Ltd - 2018 (3) TMI 357 - SUPREME COURT OF INDIA (iii) Prejudice, if the Department still wants to treat the entire amount collected from Customer as taxable in the hands of the Appellant, then the Service Tax paid ....

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....ng of cargo space and such activity falls under the category of service in terms of Section 65B (44) of the Finance Act, 1994 and is chargeable to service tax on the gross amount received. Hence appellants are liable to discharge service tax on the total value of realized by them from their customers. 4. Heard both sides and have gone through the facts of the case. 5. We find that the very issue had been addressed in the decisions of this Tribunal in the case of Skylift Cargo (P) Ltd. Vs CST Chennai (supra) and La Freight Pvt. Ltd. Vs CST Chennai (supra) relied upon by Ld. Advocate holding that mere sale and purchase of cargo space and earning profit in the process is not a taxable activity. The relevant portion of the decision in Sky....