TaxTMI 
TaxTMI 
2026 (6) TMI 954
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....ss Auxiliary Service, Business Support Service, Cargo Handling Service, Custom House Agent Service and Goods Transport Service. 2.1. The appellant, in the course of its freight forwarding operations, undertook transportation and allied logistical activities for its customers and, depending upon the requirements of the consignors and consignees, arranged for cargo movement through airlines and shipping lines. In certain cases, customs clearance activities were undertaken through independent Custom House Agents engaged by the customers, while the appellant confined itself to freight forwarding activities. For the purpose of transportation, the appellant booked cargo space with airlines and shipping lines and raised invoices upon its customers on the basis of rates prevailing in the market. It is not in dispute that the rates charged by the airlines and shipping lines varied from time to time depending upon availability of space and prevailing commercial considerations. The appellant, acting as a freight forwarder and multi-modal transport operator, procured space in vessels and aircraft and, in turn, allotted such cargo space to exporters and importers at negotiated rates in the c....
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....mounts realized from customers towards freight were considered to constitute part of the consideration received by the appellant for providing logistics support and, accordingly, were proposed to be included in the assessable value under the category of "Business Support Service" for the purpose of levy of Service Tax. 4.1. Upon adjudication, the Ld. Commissioner, by way of the impugned order, confirmed the demand of Service Tax amounting to Rs.7,74,75,223/-, along with applicable interest thereon, and imposed penalties under the provisions of the Finance Act, 1994. While doing so, the ld. adjudicating authority held that the activity undertaken by the appellant predominantly involved logistics support and management of distribution and accordingly fell within the ambit of "Business Support Service". The ld. adjudicating authority further held that the amounts recovered from customers towards ocean and air freight constituted part of the gross value of taxable services and were liable to Service Tax. 4.2. Against the said order, the appellant is before us. 5. The Ld. Counsel appearing on behalf of the appellant has inter alia submitted as follows: - (i) That the d....
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.... the following decisions in support of his contentions: * Commissioner of CGST & CE, Kolkata South v. Tierra Logistics Pvt. Ltd. [Service Tax Appeal No. 76501 of 2018, decided on 25.09.2023]; * Tiger Logistics India Ltd. v. Commissioner of Central Tax, GST, New Delhi [(2023) 9 Centax 117 (Tri.-Del.)]; * Geodis Overseas Pvt. Ltd. v. Commissioner of Service Tax, Chennai [(2023) 6 Centax 22 (Tri.-Mad.)]; * Nilja Shipping Pvt. Ltd. v. Commissioner of Central Excise [Service Tax Appeal No. 362 of 2012, decided on 10.02.2020]; * Team Global Logistics Pvt. Ltd. v. Commissioner of Central Excise, Chennai [2014 (35) S.T.R. 847 (Tri.-Chennai)]; * Agility Logistics Pvt. Ltd. v. Commissioner of Service Tax, Chennai [2014 (35) S.T.R. 858 (Tri.-Mad.)]; * Final Order Nos. 77937-77938/2025 dated 16.12.2025 and Final Order Nos. 7527375274/2026 dated 19.02.2026 passed by the Kolkata Bench of this Tribunal in the appellant's own cases. 5.3. In view of the above submissions, the Ld. Counsel for the appellant prayed for setting aside the impugned order and allowing the appeal, along with consequential reliefs. 6. On the other hand....
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....vice is that of freight forwarding and the order for provision of freight forwarding service together with CHA service for a foreign customer comes from any of the overseas group companies of the assessee which is incorporated outside India and carrying on the business of freight forwarding services outside India. Therefore, the provision of CHA service is to be treated as export of taxable service in terms of Rule 3(1)(ii) of the Export of Services Rules, 2005. As the CHA services provided by the assessee appellant from India is used outside India, and payment for the same is received by the assessee in convertible foreign exchange, we find that the assessee-company has satisfied the conditions laid down under Rule 3(2) of the said Rules. Therefore, we hold that the said service is to be treated as "export of service", which is exempt from levy of Service Tax under Rule 4 of the said Rules." 10.2. Further, we take note of the decision rendered in the case of Geodis Overseas Pvt. Ltd. v. Commissioner of Service Tax, Chennai [(2023) 6 Centax 22 (Tri.-Mad.)] wherein the Tribunal again examined the issue and observed as under:- "8.1 The first issue is whether the charges c....
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....inland waterways, sea or air; 12. The appellant takes responsibility for safety of goods and issues a document of title which is a multi-modal bill of lading and commits to delivery at the consignee's end. To ensure such safe delivery, appellant contracts with carriers, by land, sea or air, without diluting its contractual responsibility to the consignor. Such contracting does not involve a transaction between the shipper and the carrier and the shipper is not privy to the minutiae of such contract for carriage. The appellant often, even in the absence of shippers, contract for space or slots in vessels in anticipation of demand and as a distinct business activity. Such a contract forecloses the allotment of such space by the shipping line or steamer agent with the risk of non-usage of the procured space devolving on the appellant. By no stretch is this assumption of risk within the scope of agency function. Ergo, it is nothing but a principal-to-principal transaction and the freight charges are consideration for space procured from shipping line. Correspondingly, allotment of procured space to shippers at negotiated rates within the total consideration in a multi-moda....