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TMI Blog2024 (11) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 al the risk and liability for transportation. In such cases they are not covered under the category of intermediary, which by definition excl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to another generally outside India or conversely into India from Abroad. The appellant are also engaged in purchasing cargo space in bulk from shipping lines and selling the same to the customers for profit. The case of the department is that the profit earned at a difference between purchase of cargo space and selling the same to their client is liable to service tax under the category of business auxiliary service. 2. Ms. Pooja Reddy, Learned Counsel appearing on behalf of the appellant at the outset submits that on the identical issue the appellant have been issued show cause notices at different jurisdiction . The details in the tabular format is given as under : - Sr. No. Date SCN/Order No. Location Period Amount Status 1 20-04-16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the arguments on both sides and perused the records. It is not in dispute that the appellant herein is purchasing the space from the shipping lines and then is selling the same to exporters. It is the case of the revenue that this amounts to acting as an intermediary for helping the business of the shipping lines and therefore they are liable to pay service tax on business auxiliary services on the profit which they receive. It is the case of the appellant that this is a deal on principal to principal basis between them and the shipping 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviding 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 al 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 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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