2025 (6) TMI 1170

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....siness Auxiliary Service. Appellant is engaged in collecting and forwarding of goods by air and sea and registered under the category of Custom House Agent, Storage Warehouse Service, Business Auxiliary Service. On scrutiny of the records maintained by the appellant, it is observed that appellant is receiving certain consideration from airlines out of the freight payable by the exporter and it is considered as performance incentives. Alleging that such consideration is classifiable under 'Business Auxiliary Service', proceedings were initiated. Further, it is observed that the appellant is also engaged with companies/freight forwarders functioning in foreign countries for operation, arrangement on import of cargo and collect freight charges....

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....Services Ltd. Vs. Commissioner: 2019 (24) GSTL 664 (Tri.) * Direct Logistics India Pvt. Ltd. Vs. Commissioner: 2021 (55) GSTL 344 (Tribunal) * DHL Lemuir-Logistics Pvt. Ltd. Vs. CCE: 2017 (47) STR 309 (Tri.-Mum.) * CST vs. Karan Freight Movers: 2017 (4) GSTL 215 (Tri.-Del.) 2.1 As regarding the demand of Rs.7,74,594/-, learned counsel fairly admits that appellant is not disputing the said demand and as per the impugned order, service tax liability of Rs.7,74,594/- has been discharged by the appellant along with interest of Rs.4,54,417/-. 2.2 As regarding the demand of Rs.1,25,662/- under the category of 'Business Support Service', the learned counsel drew our attention to the invoice issued by the British Airways on 31.08.2007 where....

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.... limitation. 3. Learned Authorised Representative for the Revenue submits that adjudicating authority had categorically held that since the amount received by the appellant as consideration is nothing but Business Support Service and Business Auxiliary Service and such incentives are provided only for enhancing the business activity of the airlines. Thus, by extending such incentives, appellant is promoting and marketing the airlines. Thus the performance incentives received by the appellant has to be considered as consideration for providing taxable service. 4. Heard both sides. The issue is whether the incentives received from airliners/shipping lines are liable to service tax under the category of Business Auxiliary Services and collec....