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TMI Blog2018 (6) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... o-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 - demand do not sustain - appeal allowed - decided in favor of appellant. - Appeal No. ST/475/2011 - 40870/2018 - Dated:- 12-3-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri S. Muthuvenkataraman, Advocate for the Appellant Shri S. Govindarajan, AC (AR) for the Respondent Per Bench Brief facts are that the appellants are engaged in providing Custom House Agent Service, BAS etc. and are registered with the service tax department. During the audit of account, it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied 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 it is a 'multi-modal transport operator' which entails a statutorily assigned role in cross-border logistics. According to Section 2 of the Multi-modal Transportation of Goods Act, 1993. (m) multimodal transport operator means any person who - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incipal-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 notional surplus earned thereby arises from purchase and sale of space and not by acting for a client who has space or slot on a vessel. Section 65(19) of Finance Act, 1994 will not address these independent principal-to-principal transactions of the appellant a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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