Service Tax
TRT-2025-
Cestat-Chennai
Date:-24-06-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order Date – 24 June 2022
Facts:
- The appellant, M/s Geodis Overseas Private Limited, is a freight forwarder and is engaged in freight forwarding of import and export shipments and they did not discharge any Service tax on the ocean freight charges.
- Show Cause Notices were issued to the appellant wherein it was alleged that charges collected by the appellant from its customers in the nature of ocean freight are subject to levy of Service Tax under Business Support Services. Further, the appellant, which is a SEZ unit, is not eligible for refund in terms of Notification No. 04/2004 dated 31.03.2004 in respect of the input services for the reason that the services are not physically consumed within the SEZ unit.
- The original authorities confirmed the demand along with interest and imposed penalty. Aggrieved the appellant filed an appeal.
Issue:
- Whether the charges collected by the appellant from its customers in the nature of ocean freight are subject to levy of Service tax under Business Support Services?
Order :
- The authorities relying on the case of M/s. Greenwich Meridian Logistics (I) Pvt. Ltd. (Tri-Mum – 2016) held that ocean freight charges are not subject to levy of Service tax under Business Support Services or Business Auxiliary Services.
- In respect to the other issue, reliance was places on the case of M/s. Vision Pro Event Management v. Commr. of C.Ex. & S.T., Chennai wherein it was held refund cannot be denied to SEZ unit in case the approved input services were not consumed within the SEZ.
- In light of the same the authorities allowed the appeal with consequential relief impugned order is set aside.
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