2026-VIL-1668-CESTAT-CHE-ST
  1. Home
  2. 2026-VIL-1668-CESTAT-CHE-ST

SERVICE TAX CESTAT Cases

Service Tax - Taxability of income from sale of cargo space under 'Business Auxiliary Service' - Appellant, appointed as General Sales Agent of an airline, received commission for acting as such agent and separately earned income from trading of cargo space, being the difference between the purchase price and the selling price of cargo slots - Service tax was demanded on such difference on the ground that it constituted consideration for Business Auxiliary Service - Whether the difference between the sale price and the purchase price of cargo space, arising from trading of cargo slots as an independent buyer, is exigible to service tax under BAS - HELD - Under the agreement between the appellant and the airline, the appellant is entitled to sales commission only for services rendered as General Sales Agent, and where there is a specific rate arrangement for a particular consignment, the appellant is not entitled to any commission - The appellant has discharged service tax on the commission received as General Sales Agent, and the demand is confined to the difference between the sale price and purchase price of cargo slots purchased and resold by the appellant in the capacity of an independent buyer. Such trading of cargo space, where the appellant may make a profit or incur a loss, does not partake the character of commission earned as an agent and does not fall within the ambit of BAS - The amount received on sale of cargo space is only trading of cargo space and not subject to levy of service tax - The issue stands settled by earlier orders of the Bench in the appellant's own case on identical facts, which have attained finality - The impugned order is set aside and the appeals are allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?