9911796707
TMI Blog2019 (5) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice provider. He is purchasing the space at a lower price and selling the same at a higher price for a profit. Conversely, if he is not able to sell the entire spaces that he had bought or he is forced to sell the same at a lower rate, he may incur a loss. In the instant case, the demand is made on the profit earned during the relevant period by purchasing and selling the space. By no stretch of imagination, can this be considered as a service to their customers. The appellant is acting as a principal and is buying spaces in that capacity and is selling the same to their customers as a principal. There is no provision in the Finance Act, 1994 to charge service tax on profit earned from trading. Service tax can only be levied on the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riginal authority confirmed the demands along with interest and imposed penalties. Aggrieved, the appellant appealed to the first appellate authority who, vide the impugned order dismissed their appeal and upheld the order of the lower authority. Hence, this appeal. 4. Learned counsel for the appellant submits that they were not rendering any service to their customers but were purchasing space on ships and in turn selling the same to their customers and earning a profit in the process. No service tax can be levied on such profit as is proposed in the impugned order. He would submit that for the earlier period, on an identical matter, they were demanded service tax under business auxiliary services and such demands were se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed during the relevant period by purchasing and selling the space. By no stretch of imagination, can this be considered as a service to their customers. The appellant is acting as a principal and is buying spaces in that capacity and is selling the same to their customers as a principal. There is no provision in the Finance Act, 1994 to charge service tax on profit earned from trading. Service tax can only be levied on the value of taxable services rendered. In view of the above, I find that the impugned order is unsustainable and needs to be set aside and I do so. 7. The appeal is allowed and the impugned order is set aside. (Operative part of this order was pronounced in open court on conclusion of hearing) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
