Demurrage Not Taxable as Declared Service: CESTAT Mumbai

Commissioner of Central Excise & Service Tax LTU Vs Shipping Corporation of India Ltd (CESTAT Mumbai) CESTAT Mumbai Rules Demurrage Not Taxable as Declared Service; Revenue’s Appeal Dismissed CESTAT Mumbai has dismissed an appeal by the Commissioner of Central Excise & Service Tax, upholding an earlier decision to not levy a service tax on demurrage income earned by the Shipping Corporation of India (SCI). The Revenue had argued that the demurrage—a fee for delays in loading or unloading a vessel—should be taxed as a “declared service” under Section 66E of the Fin...