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2010 (9) TMI 665 - CESTAT, CHENNAIWaiver of pre-deposit - "Cargo Handling Services” - The applicants herein, who are engaged in providing “Cargo Handling Services” are incurring expenditure on account of Terminal Handling Charges, Customs MOT charges, Demurrage Charges, PSA Wharfage and FCA, which are reimbursed by their clients - The applicants are acting as pure agents and, therefore, the costs incurred by them are excludible from the value of the taxable services in terms of Rule 5 of the Service Tax (Determination of Value) Rules, 2006 - In the absence of a written agency contract/agency agreement with the clients is not sufficient for inclusion of the reimbursable expenditure in the value of taxable service - Waive pre-deposit of and stay recovery thereof pending the appeal. Waiver of pre-deposit - Input credit - As regards the balance amount the input service for which tax was paid, was an exempted service, namely, “Handling of Export Cargo Service”, the fact remains that the tax has been paid - The applicants cannot be called upon to pay - Waive pre-deposit together with interest and penalty, and stay recovery .
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