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TMI Blog2024 (11) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of the recipient of the service and same has been indicated in the invoices issued by the service provider to the recipient of the service the addition of small amount of the commission on and above the actual expenditure incurred for availing various kind of the services. The small variation in the billed amount cannot change the nature of the service which have been rendered in the entire transaction. The fact of the matter remains that the service provider has provided various kind of the services to the appellant s importer / exporter clients and for this effect, necessary invoices have been issued on which service tax has been charged by the service provider. These facts clearly indicate that appellant is not service provider of these services and the small amount of the Commissioner which have been added to the taxable value does not change the nature of the service which have been rendered by the service provider to the service recipient and the appellant have recovered the charges as on pure agent basis from their importer / exporter clients. See Tiger Logistics India Ltd [ 2023 (7) TMI 546 - CESTAT NEW DELHI] We follow the same and hold that the impugned order-i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied upon following decisions in support his arguments:- (i) Judgement in the case of Intercontinental Cosultance and Technocrats Pvt Ltd. has been affirmed by the Hon'ble Supreme Court reported at 2018 (10) GSTL 401 (S.C.). The Hon'ble Supreme Court reaffirmed the above decision in the case of Commissioner Vs Boing India Defense Pvt Ltd. (ii) The Hon'ble Tribunal, Ahmedabad in the case of Chinubhai Kalidas Brothers Vs Commissioner reported at (2024) 17 CENTAX 99 (Tri.-Ahmd.) has held that earning margin of difference between the amount charged from the clients and paid to shipping lines for procuring space on ships are not required to be included in the value for the purpose of computing service tax. (iii) This issue who came up before the Principal Bench of the Hon'ble Tribunal at New Delhi in the case of Tiger Logistics India Ltd. The Hon'ble Tribunal vide Final Order No. 50868-50870/2023, dated 11.04.2023 has held that the markup on the Ocean Freight, detention charges and toll taxes were not liable to service tax. Similar views have been taken by the Hon'ble Tribunal in the case of Balmer Lawrie Co. Ltd. Vs Commissioner reported at (2024) 19 CENTAX 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / exporter clients. The similar issue has already been decided by this tribunal in case of Tiger Logistics India Ltd Vs Commissioner of Central Tax GST Delhi vide final order no. 50868-50870/2023 dated 12th July, 2023. 13. Even otherwise, it is seen that the appellant provides cargo space to customers who are importers/exporters of goods. The appellant pays charges for space booking to different Shipping Lines/Airlines and later on sells such space to the exporters/importers at a slightly higher amount. The difference between the amount paid by the appellant to the Shipping Lines/Airlines and the amount recovered by the appellant from the customers (exporter/importers) is called the 'mark-up'. The view of the department that for the services provided by the appellant, service tax would be leviable under the category of 'support services of business or commerce' for the period prior to 01.07.2012 and would continue to be taxable for the period w.e.f. 01.07.2012 as it is not covered by any service notified in the negative list, has been considered and rejected by various Division Benches of the Tribunal. 14. In Marinetrans India Pvt. Ltd. vs. CST, Hyderabad-ST5, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the airline/carrier/ ocean-liner and the freight forwarder is merely an agent and the service of actual transportation will not be liable for service tax under Rule 10 of POPS. 2.2 The freight forwarders may also act as a principal who is providing the service of transportation of goods, where the destination is outside India. In such cases the freight forwarders are negotiating the terms of freight with the airline/carrier/ocean liner as well as the actual rate with the exporter. The invoice is raised by the freight forwarder on the exporter. In such cases where the freight forwarder is undertaking all the legal responsibility for the transportation of the goods and undertakes all the attendant risks, he is providing the service of transportation of goods, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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