Custom, Excise & Service Tax Tribunal
M/S United Liner Agencies Of India (Pvt) ... vs Cst, Delhi on 26 December, 2016
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL West Block No.2, R. K. Puram, New Delhi, Court No. 1 Date of hearing/decision: 26.12.2016 ST Appeal No. 577 of 2010 (Arising out of order-in-original No. 05/RDN/2010 dated 01.02.2010 passed by the Commissioner of Service Tax, Delhi). M/s United Liner Agencies of India (Pvt) Ltd. Appellant Vs. CST, Delhi Respondent
Appearance:
Sh. Somnath Shukla, Advocate for the appellant Dr. Neha Garg, AR for the Respondent Coram:
Honble Mr. Justice (Dr.) Satish Chandra, President Honble Mr. B. Ravichandran, Member (Technical) Final Order No. 57109/ 2016 Per: Justice (Dr.) Satish Chandra:
The present appeal has been filed against order-in-original No. 05/RDN/2010 dated 01.02.2010 passed by the Commissioner, Service Tax, New Delhi.
2. The brief facts of the case are that appellant company is providing container for cargo handling to various clients. The container is not returned well in time as per the contract. Then detention container charges are levied by the appellant. The issue in the present appeal is whether the container detention charges is subject to service tax or not.
3. Heard Sh. Somnath Shukla, ld. Advocate for the appellant and Dr. Neha Garg, ld. AR for the Revenue.
4. After hearing both the sides and on perusal of the record, it appears that the Circular No. 121/2/2010-ST dated 26.04.2010 provides that:-
3. Representations have been received in the Board that service tax has been demanded on such detention charges under the Business Support Service (BSS) or Business Auxiliary Service (BAS).
4. The issue has been examined. To retain the container beyond the pre-holding period is neither a service provided on behalf of the client (Business Auxiliary Service) nor is it an infrastructural support in the business of either the shipping lines or the customer (Business Support Service). Such charges can at best be called as penal rent for retaining the containers beyond the pre-determined period. Therefore, the amount collected as detention charges is not chargeable to service tax..
5. The issue is squarely covered by the abovementioned circular in favour of the assessee.
6. Hence, the appeal is allowed with consequential relief, by setting aside the impugned order.
(Dictated and pronounced in the open Court).
(B. Ravichandran) (Justice (Dr.) Satish Chandra)
Member (Technical) President
Pant