2024 (11) TMI 291

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....ion. The appellant are neither agent nor carrier of any exporter but are independent operator. The appellant are in the business of providing assistance to their client to move their shipment from one destination to another generally outside India or conversely into India from Abroad. The appellant are also engaged in purchasing cargo space in bulk from shipping lines and selling the same to the customers for profit. The case of the department is that the profit earned at a difference between purchase of cargo space and selling the same to their client is liable to service tax under the category of business auxiliary service. 2. Ms. Pooja Reddy, Learned Counsel appearing on behalf of the appellant at the outset submits that on the identica....

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....carefully considered the submission made by both sides and perused the records. We find that the identical cases were made out against the appellant by different jurisdiction. However, in one of the case this Tribunal Hyderabad bench has passed the following order No. A/30120/2019 dated 17.01.2019 which is reproduced below:- "6. We have considered the arguments on both sides and perused the records. It is not in dispute that the appellant herein is purchasing the space from the shipping lines and then is selling the same to exporters. It is the case of the revenue that this amounts to acting as an intermediary for helping the business of the shipping lines and therefore they are liable to pay service tax on business auxiliary services on ....

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....reight forwarder acts as an agent of an airline/carrier/ocean liner, the service of transportation is provided by the airline/carrier/ocean-liner and the freight forwarder is merely an agent and the service of actual transportation will not be liable for service tax under Rule 10 of POPS. 2.2. The freight forwarders may also act as a principal who is providing the service of transportation of goods, where the destination is outside India. In such cases the freight forwarders are negotiating the terms of freight with the airline/carrier/ocean liner as well as the actual rate with the exporter. The invoice is raised by the freight forwarder on the exporter. In such cases where the freight forwarder is undertaking all the legal responsibilit....