TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 86
X X X X Extracts X X X X
X X X X Extracts X X X X
....d forwarding of the goods from the exporter's premises in India to Indian port and from foreign port to the ultimate destination abroad. The customers of the Appellant/assessee may be Indian or foreign. These services are classified under the C&F Services on which the Appellant/assessee is duly discharging the service tax liability and the same is not in dispute in the present proceedings. 2. Apart from this, the Appellant/assessee also booked space in bulk in foreign going ocean vessels by entering into direct contract with the shipping companies on principle-to-principle basis, who raise invoices on the Appellant/assessee. The price at which the Appellant/assessee purchases the said space is called 'buy rate'. Further, the Appellant/as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tic" classifiable under the category of 'Business Support Services' defined under Section 65(105)(zzzq) read with Section 65(104c) of the Finance Act, 1994, however, it has not paid any service tax towards the said service. iii. the Appellant/assessee has not taken any service tax registration for the Business Support Service provided by them thereby contravening Section 69 of the Finance Act read with Rule 4 of the Service Tax Rules, 1994. 4. Subsequently, another Show Cause Notice dated 17.12.2015 was also issued on the same ground read with the amended provisions for the period 2012-13 to 2013-14 proposing to demand service tax amounting to Rs. 9,08,87,380/- along with interest and penalty. 5. Detailed replies against both the n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f of the appellant/assessee submits that the issue is no longer res integra as the same has been decided in their own case reported in 2024(3) TMI 285-CESTAT Allahabad, wherein it has been held that mere purchase and sale of cargo space is not a service, during the Positive List as well as Negative List regime; hence, the transactions are not liable to Service Tax. 4. Therefore, the Ld. Counsel for the appellant/assessee prays that the impugned order qua demanding Service Tax be set aside and the dropping of demand in respect of the appellant/assessee be affirmed. 5. On the other hand, the Ld. Authorised Representative of the Revenue supported the impugned order. 6. Heard the parties and considered their submissions. 7. We find that the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... space on such ships/planes (as per requirement of the client) on agreed price, and in turn, the Appellant assessee is approached by the clients (importers/exporters) for transportation of their goods. The amount paid towards freight by Appellant assessee to the shipping lines/ airlines could be less than what the Appellant assessee receives from selling of space to clients or more than that or similar also. Thus, there could be profit or loss or no-profit no-loss to the Appellant in buying & selling of cargo space. Further, the Appellant makes certain payments on behalf of its clients which are in the nature of terminal handling services, documentation service, Bill of Lading service, unloading of cargo service at the foreign port and deli....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the category of "Business Auxiliary Service BAS' nor under 'Business Support Service' and thus, the demand of service tax confirmed vide the impugned Order is not sustainable and is liable to be set aside. Further, in the case of Console Shipping Services India Pvt. Ltd. v. Commissioner of Service Tax, Delhi-II, 2023 (5) TMI-CESTAT New Delhi, the Tribunal held that the income/receipts under the head of airline commission and airline incentive was not taxable under BAS as the Appellant assessee was not buying and selling space on the airline on behalf of their client but on their own account as the they were directly buying themselves and thereafter selling the same to the exporters. Therefore, the said activity cannot be consid....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Satisfaction by the Appellant assessee 1. The freight forwarder separately negotiates the terms of freight with the airline/carrier/ocean liner as well as with the exporter. The assessee books the space with shipping lines in its own name and shipping line raise invoice on assessee. Further, separate invoice is raised on the clients wherein different amount is charged (Annexure-C, page 57-58), and this only resulted in mark-up. Thus, first condition is satisfied. 2. The invoice is raised by the freight forwarder on the exchequer. Invoices are being raised on exporters (Annexure-C, page57-58) 3. The freight forwarder is undertaking all the legal responsibility for transportation of the goods and undertakes all the attendant risks. ....