Oil Companies' Retained Freight Commission Under Finance Act Sections 66, 66B Examined for Service Tax Liability

CESTAT examined taxation of retained freight portions from oil companies under business auxiliary services. The dispute centered on whether appellant's retention of "address commission" from vessel charter charges constituted taxable service. While service provider's location in India established territorial jurisdiction, the adjudicating authority failed to properly analyze whether retained amounts represented commission from overseas vessel owners rather than service charges to oil companies. The tribunal found inadequate consideration of Place of Provision Rules 2012 and legal basis for tax liability under Finance Act sections 66 and 66B. Matter remanded to original authority for fresh examination of tax applicability, contractual relationships, and proper characterization of retained amounts as either service consideration or overseas commission payments. .....

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