9911796707
TMI Blog2015 (8) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Sections 76, 77 and 78 have been demanded along with interest under Section 75 of the Finance Act, 1994. 2. The issue that arises for consideration is whether the expenses charged directly from customers such as Bill of Lading (B/L) reissue charges, switch B/L charges, B/L surrender charges, advance cargo declaration charges, administration charges on stamp duty, amendment charges, check dishonour charges, destination documents fees, late B/L charges are leviable to service tax under the Business Auxiliary Services. 3. For appreciation of facts it is seen that the appellant had entered into an Agency Agreement with CMA-CGM France (their Principals who are the owner of an International Shipping Company) for providing the Principal wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of customer service and pricing policies, managing distribution and logistics. The service provided in relation to getting a customer, verification of prospective customer, processing of purchase order etc. would also be covered under service tax, as the law specifically provides for inclusion of such services as business auxiliary support services.' Revenue has also relied upon the Balance Sheets and its Notes to the Accounts which recognized commission income, documentation, administration communication fees, container handling charges on the basis of services rendered as per Agency Agreement with the Principal. Although, the show cause notice does not specify under which clause of Business Auxiliary Service the demand is made, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y taxable service as supported by decision of Tribunal in the case of APL (India) Pvt. Ltd. vs. Commissioner Chennai 2008 (12) STR 586 holding that recovery of service tax on documentation charges is not sustainable. And the Mumbai Service Tax Commissionerate dropped service tax proceedings on the same issue in respect of Mumbai office of APL(India) Pvt. Ltd. 5. We have carefully considered the submissions of both sides. We note that the show cause notice in the present case does not refer to any specific clause of the BAS service which is reproduced below as it stood for the period upto 15.6.2005 - "business auxiliary service" means any service in relation to, - (i) promotion or marketing or sale of goods produced or provided by or belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue seeks to demand service tax under Clause (iii) as mentioned above." 5.1 The point to be examined is whether the appellant is providing customer care service on behalf of the Principal. We find that these services are provided directly to the customers i.e. shipping lines/consignees. The charges are raised directly on the customers and payments received from them. The Ld. AR argued that the Agency Agreement clearly provides for payment of documentation charges to the Principal. The appellant provides end-to-end solutions to the customers and therefore, all charges including those directly paid by customers to the appellant are leviable to service tax. We cannot agree with this contention. The appellant is paying service tax under Steam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Agent. And from this date the appellant have in any case paid service tax under BAS. Alternatively the activities could be considered as falling under Business Support service which came into effect from 1.5.2006 i.e. after the period of dispute in the present case. Further Revenue has also not been able to justify how the said services of documentation etc. would be taxable under BAS in the face of the fact that similar services of documentation under the Agency Agreement were classified under Steamer Agent Service. Thus there appears to be a contradiction in the stand of Revenue. It is also not explained why the service tax is not demanded on similar activities in the case of M/s. APL (India) Pvt. Ltd. 6. As the appellant is not contest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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