The Hon’ble CESTAT, Mumbai vide its Final Order No. A/85046-85047 dated 27.01.2022 in the matter of M/s Bhatia Shipping Private Limited v. Commissioner of Service Tax – I, Mumbai in Service Tax Appeals No. 88100 and 88102 of 2019 held that the selling of Cargo Space by a Clearing and Forwarding agent is not a support service of business and Commerce.

Facts – The Appellant is engaged in the business of freight forwarding, clearing and forwarding and other allied activities that involve booking of Containers/Air Cargo with various shipping lines/Airlines for their customers (importer/exporter of goods). The Appellant pays charges for cargo space booking to different Shipping lines/Airlines and later on sell such space to the importer/exporter at slightly higher rate, the differential amount which the Appellant recovers is being termed as ‘mark-up’.  To read more subscribe today: www.taxo.online