2021 (9) TMI 407

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....rs from different liners like Maersk, Hapag Lloyd, etc., and sell the containers to their customers; that the nature of activity included coordinating with importers / exporters from the time of picking containers till delivery at the destination port and till the consignees take delivery of cargo; that while arranging container for shippers, the assessee collected ocean freight and local charges like terminal handling charges, documentation charges; that they also avail CENVAT Credit on such charges and pay Service Tax on the invoice amount raised on the customers; that it was noticed that the assessee collected ocean freight charges higher than the actual amounts charged by the shipping lines / steamer agents; however, they did not includ....

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....10.2020, the said proposals were confirmed, but however, the Service Tax liabilities were reduced; that thereafter, the appellant pursued by way of appeals before the First Appellate Authority, which came to be rejected vide impugned Orders-in-Appeal No. 33 & 34/2021 (CTA-I) (CN) dated 23.03.2021 and hence, the present appeals have been filed before this forum. 3. Heard Shri S. Janakiraman, Learned Advocate appearing for the assessee and Shri Vikas Jhajharia, Learned Assistant Commissioner (Authorized Representative) appearing for the Revenue. 4.1 I find that the Learned Hyderabad Bench of the CESTAT has decided an almost identical case, in the case of M/s. Marinetrans India Pvt. Ltd. v. C.S.T., Hyderabad-ST reported in 2020 (33) G.S.....

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....t must be noted that in such cases the freight forwarder bears no liability with respect to transportation and any legal proceedings will have to be instituted by the exporters, against the airline/carrier/ocean liner. The freight forwarder merely charges the rate prescribed by the airline/carrier/ocean liner and cannot vary it unless authorized by them. In such cases the freight forwarder may be considered to be an intermediary under rule 2(f) read with rule 9 of POPS, since he is merely facilitating the provision of the service of transportation but not providing it on his own account. When the freight forwarder acts as an agent of an airline/carrier/ocean liner, the service of transportation is provided by the airline/carrier/ocean-liner....

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....er, find that in an identical case, in the case of Phoenix International Freight Service Pvt. Ltd. (supra) the Tribunal has held that buying and selling space on ships does not amount to rendering a service and any profit or income earned through such transactions is not leviable to service tax. We find no reason to deviate from this view taken by the Tribunal which view is also supported by the C.B.E. & C. circular cited above. In conclusion, the demand of service tax, interest and penalties are liable to be set aside and we do so. 8. The impugned order is set aside and the appeal is allowed." 4.2 The above view of the Hyderabad Bench of the CESTAT has been reiterated by the Chennai Bench also in the following cases: (....