- CESTAT, Ahmedabad ruled that no Service Tax is payable on freight margin recovered from customers in case of outbound shipments
- Appellant was registered for Service Tax under ‘Clearing and Forwarding Agent Service’
- Department issued Show Cause Notice demanding Service Tax on excess amount charged from customers towards ocean freight
- Original adjudicating authority confirmed charges, appeal filed before CESTAT
- CESTAT held that Appellant was not covered under Rule 9(c) of POP Rules as “intermediary” service
- Rule 10 of POP Rules covers person who arranges for transport, not just actual transportation
- Place of provision of service in respect of goods transport agency is suggested by proviso to Rule 10 of POP Rules
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
