𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗢𝗰𝗲𝗮𝗻 𝗙𝗿𝗲𝗶𝗴𝗵𝘁 𝗮𝗻𝗱 𝗠𝗮𝗿𝗸-𝘂𝗽 𝗖𝗵𝗮𝗿𝗴𝗲𝘀 📢 The Tribunal held: "Service tax cannot be levied on ocean freight, air freight, or the mark-up received by the appellant from freight charges during the disputed period."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s A.G.X. Logistics Private Limited 𝗜𝘀𝘀𝘂𝗲: Whether the appellant is liable to pay service tax on the mark-up received on freight charges?

𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant collected ocean freight charges from customers, including a mark-up over the actual freight charges paid to shipping companies. The department issued a show-cause notice demanding service tax on both the freight and the mark-up.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that both ocean and air freight, along with the mark-up, are not subject to service tax during the disputed period. The mark-up is considered trading of cargo space, not a service. Consequently, the appeal was allowed, and the service tax demand was set aside.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s A.G.X. Logistics Private Limited vs. Commissioner of GST & Central Excise 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 42511 of 2017 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 12 December 2023 📜 This ruling confirms that ocean and air freight, along with mark-up on freight charges, are not subject to service tax.