NASH INDUSTRIES Vs. COMMISSIONER OF SERVICE TAX, BANGALORE

JUDGEMENT

(1.) HEARD both sides on the stay petition.

(2.) THE applicant has imported goods by air. The logistics provider has raised bill on the applicant indicating various amounts including the air freight incurred in connection with the import of the said goods. The applicant has been treated as recipient of services from the foreign based service provider (the airlines) and service tax Rs. 2,98,524/ - under the category of transportation of goods by air has been demanded by the original authority. The said order has been upheld by the Commissioner (Appeals).

(3.) LEARNED counsel submits that they are not direct recipient of services from the foreign based service provider. The value of services has been taken into account for the purpose of payment of customs duty. The air freight is not directly paid by the applicant to the airlines and therefore they cannot be treated as recipient of service from the foreign based service provider, namely the Airlines.