2014 (12) TMI 593 - AT - Service Tax

Business Support Service, Business Auxiliary Service and Goods Transport Agency Service - whether value of ocean freight, advance manifest charges, bunkering and currency adjustment charges would be included in the taxable value - Held that - Adjudicating authority observed that it is a composite service including ocean freight etc. It is also observed that the appellants are engaged in the managing, distribution and logistics, the cargo handling is only incidental to logistics activities and therefore service provided by the appellant would be appropriately classifiable under Business Support Service . Service tax is not leviable on ocean freight. It is appropriate that the adjudicating authority should examine all the issues in the light of the decision in Gudwin Logistics 2009 (11) TMI 157 - CESTAT, AHMEDABAD and appellants would be directed to produce documents for proper verification - Matter remanded back - Decided in favour of assessee.

Issues:
1. Change of respondent's name in the cause title.
2. Stay petition filed by the assessee.
3. Taxability of ocean freight, advance manifest charges, bunkering, and currency adjustment charges in the taxable value.

Issue 1: Change of Respondent's Name in the Cause Title
The Revenue filed an application seeking a change in the respondent's name in the cause title to "Commissioner of Service Tax, Chennai" from "Commissioner of Central Excise, Chennai-III" due to the appellant's jurisdiction falling under the Service Tax Commissionerate. The Tribunal allowed the application, directing the Registry to amend the cause title in all further proceedings as requested.

Issue 2: Stay Petition
After hearing both sides, the Tribunal decided to address the stay petition filed by the assessee, determining that the appeal could be decided during the stay petition hearing. Following the disposal of the stay application, the Tribunal proceeded to hear the appeal.

Issue 3: Taxability of Ocean Freight and Related Charges
The appellants were registered with the service tax authorities for providing taxable services, including distribution of logistics support service to exporters/importers. The dispute centered around whether the value of ocean freight, advance manifest charges, bunkering, and currency adjustment charges should be included in the taxable value. The adjudicating authority issued a show cause notice proposing a tax demand for a specific period.

The appellant argued that a significant portion of the demand was based on ocean freight, which they contended was not a taxable service. They cited relevant decisions to support their position. The Revenue, however, argued that the service provided was composite, with logistics support service being the predominant factor falling under Business Support Service.

Upon reviewing the impugned order, the Tribunal noted that the service provided by the appellants was a composite one, including ocean freight. Citing previous decisions, the Tribunal found that ocean freight was not liable to service tax. The Tribunal directed the adjudicating authority to reexamine all issues in light of the decisions provided and instructed the appellants to produce necessary documents for verification.

Consequently, the Tribunal set aside the impugned order and remanded the matter back to the adjudicating authority for a fresh decision in accordance with the law. The appeal was allowed by way of remand, and the stay application was disposed of. Additionally, the Tribunal granted the application for changing the cause title.

In conclusion, the judgment addressed the issues of changing the respondent's name in the cause title, the stay petition filed by the assessee, and the taxability of ocean freight and related charges in the taxable value. The Tribunal ruled in favor of the appellant regarding the taxability of ocean freight, setting aside the previous order and remanding the matter for fresh consideration.

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