CESTAT Sets Aside Service Tax Demand as Ocean Freight Mark-Up Was Profit

GAC Shipping (India) Pvt. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed the appeal filed against the Order-in-Appeal dated 12.07.2014, which had upheld the demand of service tax on the mark-up earned by the appellant on ocean freight charges. The appellant was registered under Custom House Agent Service, Transport of Goods by Road Service and Business Auxiliary Service. During an audit, the department found that the appellant had paid ocean freight charges to shipping lines on behalf of its principals a...