2026 (9) TMI 1756

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....onsideration received by the Appellant was liable to be brought to tax under 'Business Auxiliary Service' (BAS). 2. We have heard Ms. P. Saravana Selvi, Ld. Advocate for the Appellant and Shri Sanjay Kakkar, Ld. Departmental Representative defended the impugned demand. Upon hearing both the sides, we find that the very Chennai Bench in the Appellant's own cases for earlier periods vide Final Order Nos. 40156-40157/2019 dt. 18.01.2019 [in Appeal Nos.ST/706 &707/2012] and Final Order No. 40640/2019 dt. 29.03.2019 [in Appeal No.ST/156/2012] has decided the very same issue in favour of the Appellant. We find that there is no change in any factual matrix, nor is there any change in law and hence, the ratio laid down in the above Final Orders ....

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....ment is crucial for analyzing the issue under consideration. The same is extracted as under:- "The General Sales Agent shall claim sales commission of 5.0% (five percent) of the IATA's published rate for the services of MAS and on any through air transportation connection with the services of MAS in accordance to IATA Resolutions 801 and 801a(II). However, where MAS and the General Sales Agent have a prior specific rates arrangement relating to the transportation of any consignment on any particular route, the General Sales Agent is not entitled to any commission ." 6. As per clause 9, it is seen that the Malaysian Airlines and the appellant has some arrangement with regard to the rates of the cargo slots which can be sold....

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....ogo 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 Service Tax, New Delhi Vs. M/s. Karnam Freight Movers reported in 2017 (4) G.S.T.L. 215 (Tri. Del.). 7. Appreciating the facts of the case, we have no hesitation to conclude that the transaction sought to be brought within the net of service tax levy in the present proceedings does not fall under BAS. The demand therefore cannot sustain. The impugned order is set aside and the appeals are allowed with consequential relief, if any. 2. We do n....