#Ocean Freight

CESTAT Chandigarh holds that when a freight forwarder purchases ocean freight on a principal-to-principal basis and resells it with a markup, the transaction does not constitute a taxable 'Business Support Service' under the Finance Act, 1994. This clarifies the scope of taxable auxiliary services in logistics and benefits freight forwarders operating as principals, not agents, in international shipping arrangements.

CESTAT Chennai rules that ocean freight charges collected by multimodal transporters on a principal-to-principal basis between 2013-2015 are not includible in taxable value under the unamended Section 67 of the Finance Act. The ruling clarifies that reimbursable expenditures, when not billed to the end customer, escape service tax liability, offering relief to logistics service providers in pre-GST disputes.

CESTAT Hyderabad rules that trading profit from ocean freight and reimbursable expenses are not taxable under Business Auxiliary Services. Key implications for freight forwarders.

CESTAT Ahmedabad holds that service tax on ocean freight under reverse charge is ultra vires Sections 64, 66B, 67 and 94 of Finance Act, 1994, following SAL Steel and Mohit Mineral precedents.