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TMI Blog2018 (3) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... from purchases and sale of space and not by acting for a client who has space or slot on a vessel. Section 65(19) ibid will not address these independent principal-to-principal transactions of the appellant and, with the space so purchased being allocable only by the appellant, the shipping line fails in description as client whose services are promoted or marketed. Therefore, the demands, with interest thereon, and penalties are set aside. The demand cannot sustain - appeal allowed - decided in favor of appellant. - Appeal No. ST/564/2010 - Final Order No. 40630 / 2018 - Dated:- 14-3-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Ms. K. Nancy, Advocate for the Appellant Shri K.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Heard both sides. 4. The demand is made alleging that the appellant had received consideration for pre-booking of space in airlines/ shipping lines. The very same issue was decided by the Tribunal in the case of cited by the ld. Counsel. The Tribunal relied the decision in the case of Greenwich Meridian Logistics (I) Pvt. Ltd. (supra). The relevant portion is reproduced as under:- 11. Slots may be contracted for by the shipper or its agent with the shipping line through the steamer agent. Implicit is a uni-directional flow of consideration because the space belongs to the shipping line. Steamer agent or agent of shipper may earn commission in such a transaction. Leaving that situation aside, the contention of the appellant is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closes 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 two independent transactions. 13. The noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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