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TMI Blog2018 (5) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... s only a facility arranged by them to their clients. The appellant has no obligation to arrange transport of cargo through a particular shipping liner - the amount received cannot fall within the category of ‘commission’ so as to be subjected to levy of service tax. Demand not sustainable - appeal allowed - decided in favor of appellant. - ST/385 & 386/2010 - Final Order Nos. 41298-41299 / 2018 - Dated:- 24-4-2018 - Hon ble Ms. Sulekha Beevi C.S., Member (Judicial) And Hon ble Shri Madhu Mohan Damodhar, Member (Technical) Ms. S. Nandita Das, Advocate for the Appellant Shri K. Veerabhadra Reddy, JC (AR) for the Respondent ORDER Per Bench The appellants are Custom House Agent and are registered for such services wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service provider and service recipient relationship between the appellant (CHA) and the shipping liner. Merely because the appellant arranges spaces with shipping liner, it cannot be construed that the appellant has acted as a customs house agent. Appellant has discharged service tax on the commission received as custom house agent and the brokerage or incentive received from the shipping liner cannot be considered as a commission since the appellant does not communicate with the shipping liner as a steamer agent. She submitted that steamer agent is exclusively appointed by the shipping liner for the services to be rendered and is also paid commission. The learned counsel relied upon the Board Circular dated 25.4.2003 which clarified that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s would be covered by the definition of steamer agent service, even though they are registered under the category of custom house agent service. 4. We have heard the submissions made by both sides. 5. The issue has been sufficiently discussed in the case of Lee Muir Head Pvt. Ltd. (supra) wherein the Tribunal in a similar situation as observed as under:- 8.4 As regards brokerage commission of 2% paid for booking of the export cargo, it is seen that the agents of shipping lines normally book the export cargo. The appellants actually get brokerage or commission for getting orders for the export of cargo. For this, they are getting commission of 1.75% to 2%. Even if this activity is considered as Business Auxiliary Services‟ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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