CESTAT,
Bhuvaneswari Agencies (P.) Ltd.
v.
Commissioner
of Central Excise, Service Tax-II Division
Dr.
S.L. Peeran, Judicial Member
Final
Order No. 829/2007
in
Appeal No. ST/328/2006
July 27, 2007
Business Auxiliary Services
Section 65 of the Finance Act, 1994 - Business auxiliary service -
Whether activity of assessee Custom House Agent in rendering services of
arranging shipment of export cargo and negotiating same with shipping lines on
behalf of clients would fall under definition of Business auxiliary services -
Held, no - Whether more specific category for coverage of such type of
activities will be steamer agent’s service - Held, yes [Para 4]
>> Facts
The revenue demanded
service tax from the assessee under the category of ‘Business auxiliary
services’ on the ground that it was rendering services of arranging shipment of
the export cargo and negotiating the same with shipping lines on behalf of its
clients. On appeal, the Commissioner (Appeals) confirmed the demand and imposed
penalty.
On appeal
:
>> Held
In view of the
definition of the ‘Business auxiliary services’, the activities carried out by
the assessee did neither fall within the category (i) i.e., ‘Promotion or marketing or sale of goods.
. ., etc.’, nor under the category (iii), i.e., ‘any customer
care service provided on behalf of the client’. The more specific category for
coverage in the instant case would be the ‘Steamer agent’s’ service which
clearly refers to the type of activities carried out by the assessee under
section 65(100)(ii), i.e., ‘to book,
advertise or canvass for cargo for or on behalf of a shipping line’. The
promotion or marketing of service provided by the client as mentioned in
category (ii) of ‘Business auxiliary services’ under section 65(19)
has to be read along with categories (i) and (iii) of the definition of ‘Business auxiliary
services’. It cannot be broad enough to bring in a specified activity which has
been delineated under the definition of ‘Steamer agent’ under section 65(100)
which specifically covers in its item (ii), i.e., ‘to book,
advertise or canvas for cargo for or on behalf of a shipping line’. In view of
the category already mentioned under ‘Steamer agent’, the plea of the assessee
that it was not covered under the ‘Business auxiliary services’ was required to
be upheld. [
H.S. Anantha Padmanabha for the Appellant. Anil Kumar for
the Respondent.
nn