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2017 (1) TMI 1749 - AT - Service TaxLevy of service tax - clearing and forwarding agency - perform various duties like clearing cement unloading from railway, stacking storage, dispatch, realising sale proceeds, maintaining records, promoting the cement sales of the client and furnishing periodical records etc. - HELD THAT:- The respondent acting as C & F agent is liable for discharging service tax on the consideration received for such work. However, incidental to such work they were, in terms of contract, obliged to carry out certain other work. The expenses for the same were reimbursed on actual basis based on documentary evidence. Since these were reimbursed on actual basis, the impugned order held them as not to be considered for service tax purpose to tax the activity of C & F Agent. The valuation and tax liability of C & F agent service has been a subject matter of dispute. The Tribunal in various decisions held that if the C & F agent is carrying out certain activities incidental and claims the expenses on actual basis, the same are not includible in the taxable consideration. These expenses may be like go-down rent, carting and shifting charges, transportation, maintenance of staff and other establishment for the client etc. Reference can be made to the decision of the Tribunal in the case of SANGAMITRA SERVICES AGENCY VERSUS COMMISSIONER OF C. EX., CHENNAI [2007 (7) TMI 33 - CESTAT, CHENNAI]. The Tribunal held that reimbursable expenditures towards freight, labour, electricity, telephone etc. are not includible. Business auxiliary service relating to promotion of clients business - HELD THAT:- The overall commission received by the respondent is subjected to tax. We are not informed about any part of commission not being subjected to tax, to be covered under BAS. In the absence of such specific finding, we are not in a position to interfere with the impugned order. Appeal dismissed - decided against Revenue.
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