No Service Tax on Pure Agent Reimbursements: CESTAT Chennai

Seamax Shipping India Pvt. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench, has ruled that reimbursements received by service providers acting as a “pure agent” are not subject to service tax. This decision came in the case of Seamax Shipping India Pvt. Ltd. Vs Commissioner of GST & Central Excise, overturning a previous order that had confirmed a significant service tax demand. Seamax Shipping India Pvt. Ltd., engaged in clearing and forwarding agency services, faced a service tax dema...