Tiger Logistics (India) Ltd. Vs Commissioner of Service Tax (CESTAT Delhi)
To retain the container beyond the pre-holding period is neither a service provided on behalf of the client (Business Auxiliary Service) nor is it an infrastructural support in the business of either the shipping lines or the customer (Business Support Service). Such charges can at best be called as ‘penal rent’ for retaining the containers beyond the predetermined period. Therefore, the amount collected as ‘detention charges’ is not chargeable to service tax.
Toll tax is an amount paid by the appellant to the authorities which it gets reimbursed by its Customers. None of the elements required to levy service tax are present in such a transaction. No service tax can be levied on these amounts as well.
FULL TEXT OF THE CESTAT DELHI ORDER
This appeal is filed by the M/s. Tiger Logistics1 assailing Order in original dated 19.1.20162 passed by the Commissioner of Service Tax-II New Delhi whereby she adjudicated upon the Show Cause Notice3 dated 23.4.2015 and confirmed the demand of Rs. 3,59,11,270/- with interest and imposed penalty of equal amount under Section 78 and also imposed a penalty of Rs. 10,000/- each under Section 77(1) and 77(2).
2. The prayer in this appeal is ‗to partially set aside sub-para (i) of para 177 of the impugned order insofar as it confirms demand amounting to Rs. 2,08,92,006/- on:
