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2018 (11) TMI 34 - CESTAT HYDERABADClassification of services - whether the services of packing, palletisation, storage, transportation, handling of import and export cargo etc. undertaken by the appellant are classifiable as ‘cargo handling services’ / ‘Port Services’ (from 01.07.2003) or as a part of Custom Handling Agency services being rendered by the appellant? If these are considered as part of Custom House Agency services, whether the amounts which they have collected on account of the aforesaid services should be treated as reimbursable expenses and hence not included in the assessable value? Held that:- It is true that the services which they rendered with respect to handling of cargo and processing etc. are classifiable as cargo handling services if they had rendered them in isolation. However, Custom House Agent himself also renders these services in addition to the services under CHA Regulations 1984. It has been recognised by the CBEC that all these activities are part of the CHA activities. If these activities are considered as part of CHA services, then the amount charged by them should form part of the assessable value for the CHA services. The services rendered by the appellant during the course of Custom House Agency services in the form of handling of cargo etc. do not form a separate taxable service falling under Custom House Agency services or Port Services. It is a composite service rendered by the Custom House Agent. The amounts charged by them from their clients do not get included in the value of taxable services rendered to the extent that they are reimbursable expenses. This is a fact to be verified from the invoices and accounts. Appeal allowed by way of remand.
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