2020 (3) TMI 752

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....and logistics services. During audit of accounts, it was noticed that besides collecting various charges, such as documentation charges, examination charges, freight charges, appellants also collected amount towards purchasing of cargo space from shipping lines. Department was of the view that said activity falls under 'Business Support Service' and therefore subject to levy of service tax. Show cause notice was issued for different periods proposing to demand short paid service tax along with interest under BSS and also proposing to impose penalty. After due process of law, the original authority confirmed demand, interest and imposed penalty. Aggrieved, appellant is now before the Tribunal. 2. Ld. Counsel Shri N. Prasad appeared and ar....

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.... appellant purchases the cargo space from the shipping lines and whenever they find a customer such cargo space is sold to them. The activity is nothing but purchase and sale of cargo space. The allegation that the said activity is a service and therefore classifiable under BSS is erroneous. It is also alleged in the SCN that the appellant is liable to include such expenses in the taxable value of services for payment of service tax. In this case when the appellant provides cargo space by sale and collects ocean freight with charges of cargo space, it cannot be said that such activity is an input service for the appellant. Therefore the allegation that these charges are to be included as 'input service' also cannot sustain. 3. Ld. counse....

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.... a taxable activity. The relevant portion of the decision in Skylift Cargo (P) Ltd. is reproduced for ready reference as under:- "2. The facts of the case are that assessee M/s. Skylift Cargo (P) Ltd., [hereinafter referred to as assessees] are 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....