TaxTMI 
TaxTMI 
2019 (3) TMI 2116
X X X X Extracts X X X X
X X X X Extracts X X X X
....adhika Chandrasekhar, Adv. For the Respondent Shri B. Balamurugan, AC (AR). ORDER 1. After hearing both sides, we find that the issue comes for dispute involved demand of service tax in respect of the difference between the price as per the rate list of the airline and the selling price, namely, profit made on the difference between the purchase rates and the sold freight rate. We find th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e between the sale price and the purchase price of the cargo slot. 5.2 Malaysian Airlines and the appellant have entered into an agreement whereby appellant is appointed as a General Sales Agent of Malaysian Airlines. Clause 9(1) of the said agreement is crucial for analyzing the issue under consideration. The same is extracted as under:- "The General Sales Agent shall claim sale....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and thereafter sells the same to customer/exporters. The difference between sale price and the purchase price of the cargo slot is sought to be brought within the ambit of commission by the department. In such transaction, it is specifically stated in clause 9 that the appellant is not entitled to commission. In fact, for transactions as a General Sales Agent, the appellant is entitled to commissi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to the difference between sale price and purchase price of cargo slot only. The Tribunal in the case of Airogo Travels and Cargo Pvt. Ltd. (supra) had occasion to analyze a similar issue. It was held that the amount received by sale of cargo is only trading of cargo space and is not subject to levy of service tax. The Tribunal therein had followed the decision in the case of Commissioner of Serv....