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TMI Blog2017 (9) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... posing of the appeal on merits. 3. The brief facts of the case are that, the assessee-Appellants, during the period under consideration, were engaged in the business of air cargo agent and freight forwarding of export cargo. They were appointed by various airlines for booking of cargo space in airlines. In the course of business, they buy space from airlines in bulk and sell it to their customers/shippers who export goods. In other words, the assessee-Appellants were buying the space and selling the space, and in this trading activity earned income. The Department has brought the same within the scope of "Business Auxiliary Services" under Section 65(19) of the Finance Act, 1994. So, a demand of Service Tax was raised. Being aggrieved, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogistics (I) Pvt. Ltd. Vs CST, Mumbai, 2016 (43) STR 215 (Tri-Mum); (ii) Greenwich Meridian Logistics (I) Pvt. Ltd. Vs CST, Mumbai, 2016 (49) STR 233 (Tri-Mum); (iii) Phoenix International Freight Services Pvt. Ltd. Vs CST, Mumbai-II, 2017 (47) STR 129 (Tri-Mum); (iv) DHL Lemuir Logistics Pvt. Ltd. Vs CCE, Thane-I, 2017 (47) STR 309 (Tri.-Mum); and (v) CST, Delhi Vs Karam Freight Movers, 2017-TIOL-907-CESTAT-DEL. Lastly, he made a request that the impugned order be set aside. 5. On the other hand, Shri Sanjay Jain, learned DR for the Revenue, submits that, in para 16 of the impugned order the Commissioner has discussed the nature of the 'Business Auxiliary Service'. He also submits that in para 17 of the impugned order, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istinct business activity. Such a contract forecloses the allotment of such space by the shipping line or steamer agent with the risk of non-usage of the procured space devolving on the appellant. By no stretch is this assumption of risk within the scope of agency function. Ergo, it is nothing but a principal-to-principal transaction and the freight charges are consideration for space procured from shipping line. Correspondingly, allotment of procured space to shippers at negotiated rates within the total consideration in a multi-modal transportation contract with a consignor is another distinct principal-to-principal transaction. We, therefore, find that freight is paid to the shipping line and freight is collected from client-shippers in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice of transportation of goods, from a place in India to a place outside India. He is bearing all the risks and liability for transportation. In such cases they are not covered under the category of intermediary, which by definition excludes a person who provides a service on the account. 3. It follows therefore that a freight forwarder, when acting as a principal, will not be liable to pay service tax when the destination of the goods is from a place in India to a place outside India." 8. In the light of the clarification given in the Board's Circular (supra) as well as by following the ratio laid down in the case of Greenwich Meridian Logistics (I) Pvt. Ltd. (supra), we find no reason to sustain the impugned order and the same is hereby ..... X X X X Extracts X X X X X X X X Extracts X X X X
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