Order Date – 18 August 2023

Parties: M/s. Jetway Forwarders Private Limited Vs Commissioner of Central Excise

Facts – 

• The Appellant, M/s. Jetway Forwarders Private Limited is rendering services as a Custom House Agent (CHA).
• It appeared to the Revenue that the appellant had collected freight charges for transportation of goods by road. Accordingly a Show Cause Notice dated 16.06.2011 was issued wherein it was proposed, inter alia, to demand Service Tax on the GTA services allegedly rendered by the appellant.
• The Additional Commissioner proceeded to confirm the demand, as proposed, along with appropriate interest under Section 75 ibid. and penalties under Sections 77 and 78 ibid.

Issue – 

• Whether the Department was right in demanding Service Tax on the alleged GTA services from the appellant?

Order – 

• The Tribunal observed that for the subsequent period, vide in Order-in-Appeal No. 159/2017 (STA-I) dated 28.03.2017, the first appellate authority has accepted the fact that the appellant had only collected the freight charges which were merely reimbursement and without any margin.
• Thus, in the case on hand, admittedly, the appellant has not collected anything other than the actuals, which is clear from the invoices placed along with the appeal memorandum. Even from the Show Cause Notice there is no allegations against the appellant as to the collection of any charges over and above the actuals.
• Hence, in view of the fact that a similar demand has been dropped by the first appellate authority although for a different period, the demand is set aside, and the appeal is allowed.