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TMI Blog2018 (6) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... decided against Revenue. - ST/529/2011 - Final Order No. 40876/2018 - Dated:- 12-3-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical) Shri K. Veerabhadra Reddy, JC (AR) for the Appellant Shri V.S, Manoj, Advocate for the Respondent ORDER The respondent is registered under CHA services as well as Business Auxiliary Services. During audit it was noticed that the respondents are acting as agent to the Airlines (IATA) and are receiving commission for the services such as booking and transportation of cargo, preparing bills, collecting them and realizing payments etc. it was observed that the respondent was paying service tax only on the commission and was not paying servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Service Tax - 2017-TIOL-3632 as well as St. John Freight Systems Ltd. Vs. Commissioner of Central Excise vide Final Order No. 41960/2017 dated 28.8.2017. That the Tribunal in the case of Bax Global Vs. Commissioner of Service Tax vide Final Order No. 42112/2017 dated 18.9.2017 has also held the issue in favour of the respondent. 4. Heard both sides. 5. The issue whether the respondent is liable to pay service tax for the activity of booking space and selling the same to the client for air cargo goods has been decided by the Tribunal in the decisions cited by the Ide Counsel for the respondent. The Tribunal has held the issue in favour of the respondent. The relevant portion of the decision in the case of M/s. Continental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these circumstances demand of service tax under BAS cannot be sustained and the same is set aside. 4.3. The next issue is relates to the income under the 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned by the respondent, to be considered as taxable under any service category, should be shown to be in lieu of provision of a particular service. Mere sale 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)= 2016-TIOL-869-CESTAT-MUM.. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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