2024 (9) TMI 1492

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....ents by air and sea, providing integrated logistics services etc.; they are registered with the Service Tax department under the categories of Custom House Agent (CHA), Clearing and Forwarding Agent (CFA), Storage and Warehousing Service (SWS), Business Auxiliary Service (BAS), and Transport of Goods by Road (GTA) services. On verification of their records by the audit officers, it was found that the appellant was collecting certain charges from their clients in India as freight income on air and sea imports. The appellant was rendering services right from picking up the cargo in the country of origin till its delivery to the clients based in India and the activities involved loading, unloading, handling, documentation, freight etc.; they w....

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....ance with the provision of law. However, based on audit verification, the department has demanded Service Tax on the margin of freight that is the difference between freight collected from customers in India and freight actually paid to their counterparts in foreign countries under the category of 'Cargo Handling Service'. It is submitted by the counsel that this difference amount is only an incentive from the airlines and steamer liners which represents a trading profit and the same is not liable for tax. 2.1 The second issue is regarding Business Auxiliary Services and it is the claim of the appellant that booking of cargo space admitting the liability of Rs. 67,866/-, submitted that the entire demand is time barred. Relying on the decis....

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....e department only after the verification of their records during the audit hence extended period is rightly invoked. 4. Heard both sides. The short question to be decided is whether the appellant is liable to pay Service tax on the profit margin made on the freight under Cargo Handling Service and whether liable to pay Service Tax on Commission received as an agent. These issues stand settled in the appellant's own case vide Final Order No. 40241/2018 dated 30.01.2018 where in the Tribunal observed as follows: "6. The appellants are contesting only two issues. On the first issue, we have thoroughly examined their nature of activities as captured in the impugned order as well as elaborately submitted by the appellants in their appeal. The....