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TMI Blog2017 (11) TMI 1109X X X X Extracts X X X X X X X X Extracts X X X X ..... r of space. Any commission/incentive received, as a result of this transaction of sale cannot be considered as supply of BAS - appeal dismissed - decided against Revenue. - Service Tax Appeal No.60603 of 2013 - ST/A/57330/2017-CU[DB] - Dated:- 20-10-2017 - Mr. (Dr.) Satish Chandra, President And Mr. B. Ravichandran, Member (Technical) (Rep by Sh. Sanjay Jain, DR) - for the Appellant (Rep. by Sh. V.S. Manoj, Adv.) - for the Respondent ORDER Per: B. Ravichandran The present appeal is filed by the Revenue against the Order-in-Original No.35/SA/CCE/ST/2013 dated 06.08.2013 passed by the Commissioner of Central Excise, Delhi-III. 2. The brief facts of the case are that, the assessee-Respondents are engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2013 clearly covers their activities. 4. The learned counsel for the asessee-Respondents while defending the impugned order submitted that, for the income received by selling the space pre-booked in the aircraft, the matter has already been settled by the Tribunal in the case of CST, New Delhi Vs Karam Freight Movers, 2017-TIOL-907-CESTAT-DEL, and DHL Logistics (P) Ltd. Vs CCE, Mumbai-II, (2017) 84 taxmann.com 177 (Mumbai-CESTAT). He submitted that the Tribunal, in fact, dealt with both the disputes now under consideration and held that no tax liability will arise on the assessee-Respondents on these incomes. 5. We have heard both sides and perused the material available on record. We note that the tax liability on similar ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... head of airline commission and airline incentive sought to be text under BAS. It is seen that the said income is generated during the course of booking of bulk cargo by the appellant with the airline. The appellant have received the incentive and commission from the airline. The appellants are engaged in buying and selling of space in the airline and depending on the volume of the space bought by the appellant from the airlines they received the commission/incentive. The appellants are not buying and selling space on the airline on behalf of their client but on their own behalf. To consider the activity of buying and selling the taxable activity under the head of BAS, the same should be done on behalf of the client. Thus, if the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale and purchase of cargo space and earning profit in the process is not a taxable activity under Finance Act, 1994. We are in agreement with the findings recorded by the original authority. In this connection, we refer to the decision of the Tribunal in Greenwich Meridian Logistic (I) Pvt. Ltd. Vs. CST, Mumbai 2016 (43) STR 215 (Tri-Mumbai). The Tribunal examined similar set of fact and held that the appellants often, even in the absence of shippers, contract for space or slots in vessels in anticipation of demand and as a distinct business activity. It is a transaction between principal to principal and the freight charges or consideration for space procured from shipping-lines. The surplus earned by the respondent arising out of purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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