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TMI Blog2023 (5) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (2) TMI 455 - CESTAT NEW DELHI ] where it was held that This activity is a business in itself on account of the appellant and cannot be called a service at all. Neither can the profit earned from such business be termed consideration for service. The Tribunal in an earlier decision the case of GREENWICH MERIDIAN LOGISTICS (INDIA) PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX MUMBAI [ 2016 (4) TMI 547 - CESTAT MUMBAI ] held that The notional surplus earned thereby arises from purchases and sale of space and not by acting for a client who has space or slot on a vessel. Section 65(19) ibid will not address these independent principal-to-principal transactions of the appellant and, with the space so purchased being allocable only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sporting and delivering the cargo at the desired destination within India. The activities undertaken by the appellants are in relation to loading, unloading, packing, unpacking of cargo, services provided to the Custom House agents for handling containers or import cargo, transshipment of import cargo from international carrier, etc. The responsibility of the appellants pertaining to import includes collection of consignments from the foreign line and ensuring delivery of the same to the importer located in India. The officers of Directorate General of Central Excise intelligence, Kolkata developed intelligence that the appellants were evading service tax duty on cargo handling service. They were not discharging duty liability on reverse ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght charges, treating it as integral part of cargo handling services in terms of section 65(105)(zero) of the Finance Act, 1994. The appellant has filed the appeal to assail the demand confirmation by the adjudicating authority whereas the Department has filed the appeal against the dropping of the demand by the adjudicating authority. 3. The learned counsel submitted that the remittances made to the non-resident service providers were reimbursement of freight charges incurred in non-taxable jurisdiction, and therefore, was not liable for service tax. He submitted that they were invoicing to customers under the nomenclature freight charges, which reflected the freight, including fuel surcharge security, such as for transportation of cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2022 (2) TMI 455 Cestat-New Delhi]; ii. Greenwich Meridian Logistics, India Private Limited vs Commissioner of Service Tax, Mumbai [2016 (43) STR 215 (Tri-Mumbai)]; iii. Satkar Logistics vs Commissioner of Service Tax, Delhi [2021 (8) TMI) 694 Cestat New Delhi]; iv. Commissioner of Service Tax, New Delhi vs Karam freight movers [2017 (4) GSTL 215 (Tr-Del)]; and v. Bhatia Shipping Private Limited vs Commissioner of Service Tax, Mumbai [2022 (1) TMI 1175 Cestat Mumbai] 4. The departmental Special Counsel submitted that out of a total amount of Rs.821,34,94,756/- billed by the appellant in their invoices, the actual freight was only Rs.349,20,31,183/-. Therefore, the appellant should have paid service tax on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. are in appeal against the confirmed demand of Rs.5,25,21,302/- along with interest payable thereon, and the equal penalty imposed on them. The Department has filed the appeal against the dropping of the demand of Rs. 1,40,86,30,266/- by the adjudicating authority along with interest thereon. 6. The primary issue for decision is the issue on taxability of service tax on ocean freight and the liability of tax on profit/mark up, which is no more res integra as the same has been decided in catena of decisions, the latest being the judgment in the case of M/s Tiger Logistics (India) Ltd. vs Commissioner of Service Tax-II, Delhi 2022(2)TMI 455-CESTAT NEW DELHI . The relevant paragraphs of the aforesaid judgment is reproduced hereinafter:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods and issues a document of title which is a multi-modal bill of lading and commits to delivery at the consignee s end. To ensure such safe delivery, appellant contracts with carriers, by land, sea or air, without diluting its contractual responsibility to the consignor. Such contracting does not involve a transaction between the shipper and the carrier and the shipper is not privy to the minutiae of such contract for carriage. The appellant often, even in the absence of shippers, contract for space or slots in vessels in anticipation of demand and as a distinct business activity. Such a contract forecloses the allotment of such space by the shipping line or steamer agent with the risk of non-usage of the procured space devolving on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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