9911796707
TMI Blog2024 (1) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... issionerate. 2. Briefly stated the facts of the case are that the appellant are registered with the Service Tax department under the category of 'Clearing and Forwarding Agency Service' and the 'Business Auxiliary Service' during the relevant period. They are engaged in movement of cargo from client's place to final destination in foreign countries and collected freight charges from the clients and paid a part of freight charges to shipping lines, after retaining balance portion with them. The amount so retained has been alleged to be chargeable to Service Tax under 'Steamer Agent Services'. Show-cause notices were issued to the appellant on 21.09.2011 for the period 2006-07 to 2010-2011 for recovery of service tax of Rs.5,55,19,765/- with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to book empty containers. The clearing agent moves the containers to the place of loading and stuffs the goods meant for export/import. Thereafter, the container is loaded into the proposed vessel for export/import. Once the container is onboard and ship has sailed, the appellant releases the Bill of Lading to the exporter. The appellant collects freight charges, terminal handling charges and documentation charges from the customers. They discharge Service Tax on terminal handling charges and documentation charges, however, no Service Tax is paid on ocean freight nor collected it from the customers as it is not leviable to Service Tax. The department proposed to levy Service Tax on the difference between the ocean freight collected from cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be subjected to Service Tax as has been held by this Tribunal in a series of cases. The relied upon case laws are: * Balmer Lawrie and Co. Ltd. vs. CST: Final Order No.50579 - 50580 /2023 dated 01.05.2023 * M/s. Direct Logistics India Pvt Ltd vs. CST: Final Order No.20731 - 20735/2021 dated 01.09.2021 * Commissioner vs. M/s. Reliance Industries Ltd.: 2023 (8) Centax 96 (SC) * Greenwich Meridian Logistics (India) Pvt. Ltd. vs. CST, Mumbai: 2016-TIOL-869-CESTAT-MUM 4. Further, he has referred to the Board's Circular bearing No.197/7/2016 in support of his claim that excess ocean freight collected cannot be subjected to service tax. 5. Learned Authorised Representative for the Revenue reiterated the findings of the learned Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any service in connection with the ship's husbandry or dispatch including the rendering of administrative work related thereto; or (ii) to book, advertise or canvas for cargo for or on behalf of a shipping line; or (iii) to provide container feeder service for or on behalf of a shipping line. Section 65(105)(i): 'taxable service' in respect of 'Steamer Agent Service' means any service provided or to be provided to a shipping line, by a steamer agent in relation to a ship's husbandry or dispatch or any administrative work related thereto as well as the booking, advertising or canvassing of cargo, including container feeder services". 6.2 The learned adjudicating authority after analysing the definition of 'Steamer Agent Service' held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r customers. They purchase the cargo space on behalf of the customers from the shipping lines on principal-to-principal basis. The excess ocean freight collected from the customers, thus cannot be considered as a commission paid by the shipping lines to the appellant. Whether Service Tax be leviable on the excess ocean freight collected from the customers is the issue now needs to be addressed. 6.4 This issue of chargeability of Service Tax on excess ocean freight retained by the service provider is no more res integra and considered by the Tribunal in a series of cases. Recently, the Principal Bench in Balmer and Lawrie and Company Ltd. case referring to the judgments by the Tribunal held as follows: "6. The primary issue for decision i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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