ST - Taxability of ocean freight collected by multi-modal transporter

 

M/s.C. H. RobinsonWorldwide Freight India Pvt. Ltd. vs. CST - Chennai - 2013-TIOl-1295-CESTAT-MAD

Facts:

The appellant, a multi-modal transporter, charged service tax under heads like terminal handling, bill of lading, agency charges etc., and diligently discharged the same under the category of "Business Support Services". They also collected ocean freight on which no service tax was paid. The department contended to levy tax on the same considering it as reimbursable expenditure and thus issued SCN and demanded tax on such value of ocean freight under the category of "Business Support Service" which the adjudicating authority confirmed under the category "Business Auxiliary Service".

Held:

The Hon. Tribunal stated that the reply to the SCN and order-in-original did not provide a clear picture of the activity and thus ordered a pre-deposit of part amount.