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TMI Blog2024 (10) TMI 1629X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue in the present appeals is whether the Appellant is liable to pay service tax on income earned from Freight forwarding activity, pertaining to the ocean freight related to the ocean cargo and the margin earned on sale of space on the shipping lines to the exporters/ importers, under the service category of 'Steamer Agency' Services. 2. The brief facts are Appellant is engaged in rendering 'Steamer Agency' Services, 'Support Services of Business or Commerce', 'Business Auxiliary Services' and 'Goods Transportation Agency' Services. Appellant was registered for the above services and paying service tax. 3. The Department alleging that the income received by the Appellant from freight forwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that when the decision in the case of Bax Global India Ltd. Vs. Commr. of Service Tax, Bangalore-2008 (9) S.T.R. 412 (Tri. Bang.) is applied to the facts of the case, the appellant's claim for exclusion to pay tax on actual 'ocean freight' paid by them to the shipping line would sustain. The adjudicating authority also relied on the following decisions/Circular; a. Goodwin Logistics Vs. CCE, Vadodara-2010 (18) S.T.R. 348 (Tri.-Ahmd.) b. DHL Leimur Logistics Pvt. Ltd. Vs. CCE, Bangalore-2010 (17) S.T.R. 266 (Tri.-Bang.) c. Board's Instruction vide F.No. B43/1/97-TRU dated 16.06.1997 5. Further, the adjudicating authority held that the actual 'ocean freight' should be deducted from the amount of freight sales i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 dated 26.09.2014 along with interest and imposed penalties under the provisions of Finance Act, 1994. Aggrieved by said orders, Appeal Nos. ST/23863, 238654, 23865/2014 were filed by the appellant before this Tribunal. 7. The Committee of Chief Commissioners reviewed the order of the Commissioner and found that it is not legal and proper insofar as it related to the decision to exclude the amounts paid to the shipping lines from service tax liability after 18.04.2006 arising on account of additional consideration in the form of margins retained by the appellant in the process of booking and arranging space on behalf of shipping line and the customers for the purpose of freight forwarding, since the service rendered by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ix International Freight Services Pvt. Ltd. (g) 2017 (6) G.S.T.L. 85 (Tri.-Mumbai)-DHL Logistics Private Limited Vs. Commissioner of C. Ex., Mumbai-II.. (h) 2017 (47) S.T.R. 309 (Tri.-Mumbai)-DHL Lemuir Logistics Pvt. Ltd. Vs. Commissioner of C.Ex., Thane-l. (i) 2017 (4) G.S.T.L. 215 (Tri.-Del)-Commissioner of Service Tax, New Delhi Vs Karam Freight Movers. (j) 2022 (63) G.S.T.L. 337 (Tri. Del)-Commissioner of Service Tax-II, Delhi. Vs. Tiger Logistics (India) Ltd. (k) Final Order of Delhi Tribunal dated 01.05.2023 in M/s. Balmer Lawrie & Co. Ltd. Vs. Commissioner of Service Tax, New Delhi. 10. The learned counsel also relied on the Board Circular No. 197/7/2016-ST dated 12.08.2016, wherein it is clarified that freight forwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the shipping lines is squarely covered by the Tribunal in the matter of M/s Tiger Logistics India Ltd. Vs. Commissioner of Service Tax-II, Delhi-2022 (63) GSTL 337 (Tri.-Del), where it is held that:- "8. If a service is not rendered at all, no service tax can be levied regardless of the fact that an amount has been received. Similarly, if the service so rendered does not squarely fall within the definition of 'taxable service' under Section 65(105), no service tax can be levied. Even if it is doubtful whether the service is taxable or not, the benefit of doubt in respect of the charging section goes in favour of the assessee and against the revenue. The third important element is the consideration for the service. Any amount received ..... X X X X Extracts X X X X X X X X Extracts X X X X
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