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2014 (8) TMI 515 - HC - Service TaxWaiver of pre deposit - Clearing and Forwarding Agent - Discrepancy in books of accounts - Held that:- The Appellant prima facie was registered as a Clearing and Forwarding Agent. The returns for service tax were filed. During the audit the difference was noted in the amounts received from the clients in the balance sheet and in the amounts on which service tax was paid as per the statutory returns. The Appellant failed to reconcile this difference, therefore, the demand was confirmed - The component has been bifurcated and the Tribunal was shown that the amount of freight was taken into consideration while confirming the demand and which cannot form a part of taxable service. The amount received as destination charges which are in respect of clearance of goods at the destination by the foreign service provider is the component that could not have been taken for the purpose of service tax liability. If these are destination charges collected from the customers in India and the amount has been taken again while confirming the demand, then, the service which is exfacie not taxable has been brought to tax - the aspect is arguable - amount of pre-deposit ordered by tribunal modified and reduced - decided partly in favor of assessee.
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