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TMI Blog2025 (1) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... n the volume of transaction for the activity of forwarding cargo through the airlines and, after following other orders of coordinate Benches, this Bench had ruled in favour of the assessee and held that the additional amount would not be liable to service tax. Conclusion - The demand for service tax under BAS was not justified. There are no merit in the impugned order - appeal allowed. - HON BLE MR. P. DINESHA , MEMBER ( JUDICIAL ) And HON BLE MR. VASA SESHAGIRI RAO , MEMBER ( TECHNICAL ) Ms. Saravana Selvi P. , Advocate for the Appellant Ms. Anandalakshmi Ganeshram , Authorized Representative for the Respondent ORDER Per : Shri P. Dinesha Facts in brief, as could be gathered from Para 2 of the OIA, reads thus : The appellant is a provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties placed in the Appeal memorandum; we have also carefully considered the decisions/orders relied upon during the course of arguments before us. 3. After hearing both sides, the only issue that arises for our consideration is, Whether the demand of service tax under commission Agent service, insofar as the other receipts is concerned, is justified? 4. We find from the order of this Bench [Final Order No. 40876/2018 dated 12.03.2018 in Appeal No.ST/529/2011] which has been relied upon by the ld. Advocate in the appellant s own case for an earlier period, wherein this Bench had considered the additional amount received as incentives based on the volume of transaction for the activity of forwarding cargo through the airlines and, after follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gued that for sustaining demand under BAS, there has to be third party involved in the transaction namely a client. In the absence of any client, no demand under BAS can be raised. We find substantial force in the argument of Ld. Counsel, the freight rebate is a revenue stream generated out of trading of the space in the airline incentives. Unless the space is booked by the appellant specifically for a client the components of the Business Auxiliary Service do not come into play. In the instant case. there is no such allegation and the appellants are booking the space for their own trading activities. In these circumstances demand of service tax under BAS cannot be sustained and the same is set aside. 4.3. The next issue relates to the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eller of space and the buyer of space. Any commission/incentive received, as a result of this transaction of sale cannot be considered as supply of BAS. In view of above, the demand under the head of BAS for the Revenue generated as airline/airline incentive is set aside. 6. Similar ratio has also been followed in the case of Karam Freight Movers (supra). The observations of the Tribunal are as below : 11. On the second issue regarding the service tax liability of the respondent under BAS, we find that the impugned order examined the issue in detail. lt was recorded that the income earned by the respondent, to be considered as taxable under any service category, should be shown to be in lieu of provision of a particular service. Mere sale a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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