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TMI Blog2025 (2) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the ships which it bought cannot be sold to its customers fully, or due to market conditions, or is compelled to sell at lower than purchase price, the appellant incurs loss. In a contrary situation, it gains profits. This activity is a business in itself on account of the appellant and cannot be called a service at all. Neither can the profit earned from such business be termed consideration for service.'
Conclusion - The appellant is not liable to pay service tax on the income from the freight forwarding activities in question.
The impugned order is set aside - appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... lant filed appeals before the Tribunal. Thereafter, the issue was considered by this Tribunal and vide Final Order Nos.25631 and 25632/2013 dated 23.07.2013, the matter was remanded for de novo adjudication. During the above period, another show-cause notice No.124/2013 dated 24.06.2013 was issued demanding Service Tax of Rs.3,58,54,315/- for the period from 10/2011 to 09/2012. The adjudicating authority in the de novo proceedings confirmed the demands along with interest and penalties. Aggrieved by the said order, present appeal is filed. 4. When the appeal came up for hearing, the learned counsel for the appellant submits that the issue is no more res integra since this Tribunal has considered the issue in detail in Service Tax Appeal No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eight is concerned, the appellant buys space on ships from the Shipping Line and the Shipping Line issues a Master Bill of Lading in favour of the appellant. In turn, it sells the space to its customers and issues a House Bill of Lading to each of them. The first leg is the contract between the Shipping line and the appellant. The second leg is the contract between the appellant and its customers. Evidently, anyone who trades in any merchandise or service buys low and sells high and the margin is his profit. To earn this profit, he also takes the risk of being unable to sell. In the appellant's case, if the space on the ships which it bought cannot be sold to its customers fully, or due to market conditions, or is compelled to sell at lower ..... X X X X Extracts X X X X X X X X Extracts X X X X
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