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TMI Blog2023 (8) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... brokerage was paid to them. In reality the work of steamer agent was performed by the appellant as sub-agent of the main steamer agent. Therefore, the services rendered by the appellant will be rightly classifiable under the category of steamer agent - the decision of the Larger Bench in the case of COMMISSIONER OF SERVICE TAX VERSUS MELANGE DEVELOPERS PVT. LTD. [ 2019 (6) TMI 518 - CESTAT NEW DELHI] noted, wherein it has been categorically held that it is not open to a sub-agent contend that he should subject to service tax liability in respect of service tax liability when the main contractor has paid service tax on the gross amount. Thus, since the appellant being a sub-contractor has provided the service of the steamer agent, they a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kumar Singh , Superintendent ( AR ) for the Respondent ORDER C. L. MAHAR : The brief facts of the matter are that appellant are working as sub agent of Steamer Agent and providing services under the category of Business Auxiliary Services and Business Support Services . The appellant were appointed as sub-agent by M/s. Freight Connection India Pvt. Limited to perform various works under the category of Steamer Agency Service. M/s. Freight Connection India Pvt. Limited is the main Steamer Agent who provides service to various shipping lines i.e. Arc Lines, Bay Lines etc. In short, the scope of work performed by the appellant is of a sub-agent for M/s. Freight Connection India Pvt. Limited which included service of booki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant have not provided service of the Steamer Agent to any shipping line. The department s contention that M/s. Freight Connection India Pvt. Limited is the principal and the appellants being termed as the steamer agent is legally incorrect. It has been argued that correct hierarchy in the business of shipping that various foreign shipping lines are principals who have appointed M/s. Freight Connection India Pvt. Limited as steamer agent by various shipping lines. The department has wrongly interpreted the provisions and considered M/s. Freight Connection India Pvt. Limited as principal and the appellant as its sub-agent. 2.1 With regard to brokerage received by the appellant, it is contended that the department is not understood ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Freight Connection India Pvt. Limited has been paying service tax on the charges received by them from various shipping lines. It has further been submitted by learned Advocate that had the tax been paid by the appellant the same would have been available as Cenvat credit to M/s. Freight Connection India Pvt. Limited and therefore, there is no revenue effect in the entire exercise and hence the matter is revenue neutrality. Therefore, there should not have any demand from them as entire amount of the service charges have been included by M/s. Freight Connection India Pvt. Limited with regard to payment of service tax. The learned advocate in support of his contention has relied upon several decisions which are as follows:- (a) Indian N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided service to the main contractor are not required to pay any service tax. 3. We have heard both the sides in detail and are of the view that only question needs to be answered by us is whether the appellant are liable to pay service on the amount received by them as brokerage under the category of steamer agent service or not. 4. Before proceeding further, it will be relevant to reproduce the definition of Steamer Agent given under Section 65(100) of the Finance Act, 1994 which reads as follows:- Steamer Agent' means any person who undertakes either directly or indirectly. (i) to perform any service in connection with the ship's husbandry or dispatch including the rendering of administrative work related there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that he should subject to service tax liability in respect of service tax liability when the main contractor has paid service tax on the gross amount. Thus, we are of the view that since the appellant being a sub-contractor has provided the service of the steamer agent, they are liable to pay service tax. 6. As regards the invocation of extended period under proviso to Section 73 of Finance Act, 1994, we find that there has been a lot of confusion and mis-understanding in the trade whether the sub-agent need to pay service tax on the amount charged by them from the main contractor/ agent who has already discharged service tax liability on the gross amount. We find that appellant were under the bonafide belief that no service tax was paya ..... X X X X Extracts X X X X X X X X Extracts X X X X
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