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TMI Blog2019 (3) TMI 1388X X X X Extracts X X X X X X X X Extracts X X X X ..... ale and purchase of cargo space is trading and is not a taxable activity. It is trading of cargo space - demand do not sustain - appeal allowed - decided in favor of appellant. - ST/00697, 00698/2012 - FINAL ORDER NOs. 40135-40136/2019 - Dated:- 17-1-2019 - Smt. Sulekha Beevi C.S, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) For the Appellant Shri G. Thangaraj, Cons. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. He explained that the appellants, who is a steamer agent approaches other steamer agents for transport of goods by sea in respect of few countries. The differential ocean freight collected is the appellants logistics/trading income. The transactions are purely on principal to principal basis. He relied upon the decision in the case of Commissioner of Service Tax, New Delhi Vs M/s. Karam Fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o space. The relevant discussion is reproduced as under:- 7. Regarding the brokerage or commission received from airlines or agents, the ld. Counsel submitted that as a CHA regularly involved in shipment of cargo they book cargo space in the ship/airlines, well in advance, and when the actual cargo is shipped, they charge the client on the basis of rate applicable at the relevant time. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent is providing service. Original authority considered both the scenario, airline/shipping lines as a client or exporter/shipper as a client. In case the respondent is acting on behalf of airlines/shipping lines as client, it was held that they are covered by tax liability under BAS. Further, examining the issue the original authority viewed that commission amount is necessarily to be obtained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds of appeal did not bring any contrary evidence to change such findings. Accordingly, we find no merit in the appeal by Revenue. The appeal is dismissed. 6. Following the decision referred to in para 5 above, we are of the view that the demand cannot sustain and requires to be set aside. The impugned order is set aside. The appeal is allowed with consequential reliefs, if any. (Dictate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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