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TMI Blog2019 (4) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... n them and the shipping lines and again between the exporters and them. They are not acting as an agent. They could purchase the space for a lower price and sell it at a higher price and thereby earn profit. On the other hand, if they failed to sell the space to exporters, after purchasing from the shipping lines, they may incur a loss. They are not receiving any commission whatsoever from the shipping line or from the exporters. In an identical case, in the case of Phoenix International Freight Service Pvt Ltd [2016 (9) TMI 585 - CESTAT MUMBAI], the Tribunal has held that buying and selling space on ships does not amount to rendering a service and any profit or income earned through such transactions is not leviable to service tax. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... along with interest and imposed penalties as proposed. Hence, this appeal. 3. Learned counsel for the appellant submits that they have not rendered any service to the shipping lines in this deal nor have they received any service charges. They have been purchasing space from the shipping lines on a principal to principal basis and in turn have been selling these spaces to individual exporters. Since they were purchasing space at a lower rate and selling it at a higher rate to the exporters they were earning an income or profit from such venture. The department wants to charge service tax on this income which is not correct because they were not acting as an agent of the principal but they were buying their spaces and in turn selling it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to the shipping line or to its customers, more so, under business auxiliary service. This view of ours is fortified by the decision of this very same bench in the case of Greenwich Meridian Logistics (India) Pvt Ltd and by a Coordinate Bench of this Tribunal in the case of DHL Lemuir Logistics Pvt Ltd. Since the issue involved in this case is already decided against the Revenue, respectfully following the same, we set aside the impugned orders in both the appeals as regards the demand raised and confirmed under this issue. 4. She submits that since their case is squarely covered by the aforesaid decision, the ratio may be applied and their appeal may be allowed. 5. Learned departmental representative does not dispute the facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Para 2.1-3 which are as follows: 2.1 The freight forwarders may deal with the exporters as an agent of an airline/carrier/ocean liner, as one who merely acts as a sort of booking agent with no responsibility for the actual transportation. It must be noted that in such cases the freight forwarder bears no liability with respect to transportation and any legal proceedings will have to be instituted by the exporters, against the airline/carrier/ocean liner. The freight forwarder merely charges the rate prescribed by the airline/carrier/ocean liner and cannot vary it unless authorized by them. In such cases the freight forwarder may be considered to be an intermediary under rule 2(f) read with rule 9 of POPS, since he is merely facil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BEC circular also that the revenue was also of the view that service tax is payable when one acts as an intermediary and not as a trader dealing on principal to principal basis on their own account which is undisputedly the case here. We, further, find that in an identical case, in the case of Phoenix International Freight Service Pvt Ltd (supra) the Tribunal has held that buying and selling space on ships does not amount to rendering a service and any profit or income earned through such transactions is not leviable to service tax. We find no reason to deviate from this view taken by the Tribunal which view is also supported by the CBEC circular cited above. In conclusion, the demand of service tax, interest and penalties are liable to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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