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TMI Blog2018 (1) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... PCIL). The agreement contains the distribution of work which is as under:- Lemuir As lead Member it shall bear overall responsiblity of planning, coordination, monitoring and satisfactory execution of the contract including forwarding and clearing, custom / port clearance of cargo at Tuticorin Port / Port of discharge and warehouse management at KK-NPP. FHB Port handling in Russian Federation and other third countries, loading of cargo on vessel and ocean / air shipment of the cargo covering all associated activities thereto. RSPL Inland and sea transportation in India In addition to the above agreement, the respondent had also entered into individual agreement with FHB and RSPL. On investigation and scrutiny of records, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - received by respondent) observed that the respondents are liable to pay service tax on the difference taxable value of Rs. 0.2 per MT only. He submitted that as per CBEC Guidelines in Circular F.No. 343/1/97-TRU dated 6.6.1997, when Customs House Agents charge a lump sum amount from the clients for undertaking various services, and where no separate break up is given in respect of expenses, the value of taxable services shall be 15% of the lump sum charged to the client. That therefore respondent having rendered services on lump sum basis, the authority below ought not to have deducted the amount charged / paid to RSPL. 3. With regard to the demand on BAS, as shown in Annexure III to the show cause notice, ld. AR submitted that the Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that in the impugned order, the Commissioner has analyzed the issues referring to the respective annexures in the show cause notice. It is submitted by him that the respondent is confining the contest only with regard to Annexure 1 and 3. That the appeal filed by the department with respect to the issues regarding Annexure 2 and 4 is not contested by the respondent. That the respondent has already discharged the service tax in respect of the demand raised in Annexure 2 and 4. In respect of demand referred to Annexure 1 which pertains to CHA services, the ld. counsel reiterated the findings in the impugned order made by the Commissioner. He submitted that the respondent had paid the service tax at the rate of Rs. 176/- per MT, afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. counsel that the said services are rendered to FHB which is situated outside India (services relating to port handling in Russian Federation) and the consideration was received in foreign exchange. This being so, the services was export of service and does not attract levy of service tax. 6. Heard both sides and perused the records. 7. The ld. counsel appearing for the respondent has submitted that the appeal filed by the department in regard to Annexure 2 and 4 is not contested by the respondent. That they are ready to accept the demand in respect of Annexure 2 and 4 and that the respondent has already discharged the service tax liability in this regard. We therefore hold that the order of the Commissioner (Appeals) setting aside t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax is raised on the services rendered to FHB under BAS. In para 17.1 of the show cause notice, it is seen stated that on verification, it was revealed that respondents had entered into agreement with FHB to act as agent of FHB for handling and distribution of a portion or all the contents of a consolidated shipment for delivery or re-consignment. Respondents have agreed to provide all such services on behalf of FHB in respect of cargo as are normally rendered by break bulk agents. Therefore the charges received by respondent for such activities from NPCIL are actually on behalf of FHB. In such circumstances, the observation of the Commissioner that the respondents have not rendered services for and on behalf of FHB does not appear to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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