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TMI Blog2016 (10) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... secondary service rendered to the primary service provider namely the airlines towards export of cargo services. To this extent, the CBEC Circular covers the issue in favor of the appellant. The decision in the case of Lee & Muir Head Pvt. Ltd. vs. CST, Bangalore [2008 (10) TMI 131 - CESTAT, BANGALORE] relied upon where it was held that the appellants are secondary service providers for the shipping lines, brokerage commission of 2% paid for booking of export cargo cannot be taxed under the category of 'Business Auxiliary Services'. Demand not sustainable - interest and penalty also fails - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 1561 of 2010 (SM) - Order No. A/53632/2016/2016-SM[BR] - Dated:- 16-9-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant also cited the following decisions which are in their favour and on identical set of facts:- (i) Ruth Shipping Agencies Pvt. Ltd. vs. CCE, Thirunelveli reported in 2010 (19) S.T.R. 39 (Tri.- Chennai) ; (ii) Lee Muir Head Pvt. Ltd. vs. CST, Bangalore reported in 2009 (14) S.T.R. 348 (Tri. - Bang.). 2. I have heard Shri Rupesh Sharma, learned Advocate for the appellant as well as Shri H.C. Saini, learned DR. 3. The activity undertaken by the appellant is selling of space for booking export cargo with various airlines and have received commission/brokerage for this activity. The CBEC Circular cited above has clarified as follows : 4. Another question raised is about the taxability of secondary services which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission for getting orders for the export of cargo. For this, they are getting commission of 1.75% to 2%. Even if this activity is considered as 'Business Auxiliary Services' as they promote the taxable services of other person, it is seen that there is a Notification No. 13/2003 dated 20-6-2003 which gives exemption under Business Auxiliary Services' for services rendered as commission agent Moreover, Board's Circular dated 25-4-2003 clarifies that the secondary service providers are not taxable. In fact the appellants are secondary service providers for the shipping lines, so they would not be covered in view of the Board's circular. Therefore, we are of the view that the brokerage commission of 2% paid for booking ..... X X X X Extracts X X X X X X X X Extracts X X X X
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