Margin Earned on Sale and Purchase of Cargo Space is Trading Activity, Not Liable to Service Tax: CESTAT

CESTAT held that the margin earned on the sale and purchase of cargo space is a trading activity and not liable to service tax. The tribunal distinguished between the service of providing cargo space and the activity of trading in cargo space, where the margin is essentially profit from buying and selling. This ruling clarifies the tax treatment of such transactions in the logistics and shipping industry, providing relief from service tax liability for entities engaged solely in the trading of cargo space rather than its direct provision as a service.