#Principal-to-Principal Transaction

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 holds that profit sharing between freight forwarders in multimodal transport constitutes business income, not taxable service under Section 65(19) of Finance Act, 1994.