Case Law Details
Haiko Logistics India Pvt. Ltd. Vs Commissioner of Service Tax (CESTAT Delhi)
CESTAT Delhi held that appellant was buying and selling space on its own account and was not acting on behalf of the shipping lines. Hence, the same is not covered under the definition of Business Auxiliary Service (BAS).
Facts- The appellant is a multi-modal transport operator under Multi-Modal Goods Transport Act, 1993 and is having a license/registration issued by Directorate General of Shipping.
The clients (importers/exporters) approach the appellant for transportation of their goods from overseas or to overseas and the appellant in turn approaches various shipping lines/airlines and books cargo space on such ships/planes as per requirements of the clients on agreed price and transports the goods thereafter. The amount paid towards freight by the appellant to the shipping lines/airlines can be less than what the appellant receives from the selling of space to clients or more than that or it can be the same. Thus, there can be profit or loss or no profit no loss to the appellant while buying and selling cargo space.
There are also certain payments towards customs duty, air freight, ocean freight and surcharges which are made by the appellant on behalf of the clients and thereafter recovered from the clients without any mark-up. The appellant claims that since the payment made by the client towards the said charges are in the nature of reimbursements, the same are recorded by the appellant as non-taxable in the books of accounts.
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