9911796707
TMI Blog2021 (9) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... or income earned through such transactions is not leviable to service tax. The lis appears to be no more res integra and therefore, the impugned orders cannot be sustained - Appeal allowed - decided in favor of appellant. - ST/40306 & 40311/2021-SM - FINAL ORDER NOs. 42304-42305/2021 - Dated:- 7-9-2021 - MR. P. DINESHA, MEMBER (JUDICIAL) Shri S. Janakiraman, Advocate for the Appellant Shri Vikas Jhajharia, Authorized Representative for the Respondent ORDER Brief facts, as could be gathered from the common Order-in-Original as well as the Show Cause Notices, inter alia, are that during the course of verification of records of the assessee by the audit wing of the Department, it was noticed that the assessee had hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covery of Service Tax of ₹ 1,26,17,955/- for the period from 2007-08 to 2010-11 under proviso to Section 73(1) of the Act ibid., along with interest under Section 75 of the Act ibid; that the Notice also proposed penalty under Sections 76 and 78 of the Act; that for the subsequent period 2011-12 and 2012-13, one more Show Cause Notice No. 359/2013 dated 31.10.2013 was issued to the assessee for recovery of Service Tax of ₹ 1,79,09,270/- by invoking extended period of limitation provided under proviso to Section 73(1) of the Act ibid., along with interest under Section 75 of the Act ibid.; that penalty under Sections 76, 77 and 78 of the Act was also proposed in the Notice; that vide common Order-in-Original Nos. 76 77/2020 CH. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. We have considered the Circular of the C.B.E. C. cited by the Learned Departmental Representative at 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 transp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , from a place in India to a place outside India. He is bearing all the risk and liability for transportation. In such cases they are not covered under the category of intermediary, which by definition excludes a person who provides a service on his account. 3. It follows therefore that a freight forwarder, when acting as a principal, will not be liable to pay service tax when the destination of the goods is from a place in India to a place outside India. 7. It is evident from the C.B.E. C. 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, furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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