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TMI Blog2017 (8) TMI 1285X X X X Extracts X X X X X X X X Extracts X X X X ..... tom House Agents (CHA) Service and Business Auxiliary Service (BAS). Pursuant to investigation, the department was of the view that the appellants are not discharging service tax liability on various charges which fall under CHA service as well as BAS. Show cause notices were issued for different periods. Upon adjudication, the adjudicating authority confirmed the duty demands along with interest and imposed penalties. Hence these appeals. 2.2 On behalf of appellant, ld. Counsel Shri N.Prasad submitted the details of the period involved and the issues involved in various appeals which is given in the table as below : S. No. Appeal No. Period Date of SCN Issues Involved Penalty/Interest 1. ST/122/2006 01.07.2003 to 30.06.2004 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egory of CHA service whereas in the present case, the department has sought to bring the break bulk fee under the category of BAS. He argued that break bulk fee represents only the share of profit earned between the group companies of the appellant and it is only a profit sharing between group companies and is not a consideration for service. 2.5 The other charges which are in dispute are (1) Agency Fee (2) Unallocated Income, (3) System Currency Assessment Factor and (4) Expenses Reimbursement. 2.6 He submits that Agency fee are charges collected from the importers for preparation of delivery order and for handing over the goods to the importer indicated in the house airway bill. 2.7 Unallocated income represents charges in accounting e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded only those services provided or rendered on behalf of the client. In such a case, rendering of services on behalf of client requires three parties. In regard to charges collected by the appellant, there is no involvement of three parties and the services are rendered directly to the client; that therefore the said charges / services would not fall under the category of Business Auxiliary Service . 2.12 Ld. counsel also argued to set aside penalties imposed contending that being an interpretational issue, there was much confusion as to whether services would fall under BAS or CHA services or whether the charges collected would be subjected to service tax at all. 3. The Ld. A.R Shri K. Veerabhadra Reddy reiterated the findings in the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous regulatory formalities in foreign exchange remittance laws and to protect the importer from exchange rate fluctuations that occur between finalization of freight charges and remittance of freight charges. The Tribunal in the said decision held that demand under CCX fee as BAS is sustainable. Following the same, we hold that the demand in the appeal has to be sustained. 5.3 The issue of break bulk fee in the case of DHL Logistics Pvt. Ltd. (supra) was whether such fee would fall within the category of CHA service , whereas in the present case, the issue is whether the said fee would fall under BAS. The Mumbai Bench of the Tribunal in the aforecited case held that such fee would not fall under CHA service setting aside the demand. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder in respect of Appeal ST/132/2007 to the extent of demand raised in regard to CCX fee is confirmed. Demand in respect of Airline Incentive is set aside. Since the issue stands covered by the decision of Mumbai Bench, demand in respect of break bulk fee, agency fee, unallocated income, system currency assessment factor and expenses reimbursement is set aside since the appellant has been discharging service tax on these amounts under "Business Support Service" w.e.f. 1.5.2006 and for the reason that these charges did not fall under the category of BAS during the disputed period. 7.16. Ld. Counsel has prayed to set aside penalty contending that the issue whether such charges would fall under the category of CHA/BAS/BSS or interpretational ..... X X X X Extracts X X X X X X X X Extracts X X X X
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