Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 996 - AT - Service TaxClear & Forwarding Agent - Valuation - whether the expenses as mentioned above which were being reimbursed by the principals to the appellants are includible in the assessable value of the C&F Agent services for payment of service tax - Held that:- it is not the case of the appellant that the service recipient were reimbursing the expenses in question to them as per their legal obligations. In view of this, in terms of the judgement of the Larger Bench of the Tribunal in the case of Bhagavathy Traders (2011 (8) TMI 430 - CESTAT, BANGALORE) the amount received by the appellant from their principals would be includible in the assessable value. However, we find that since during the period of dispute, there were conflicting decisions on the point of dispute in this case because of which the appellant could have entertained a bonafide doubt about inclusion of reimbursement expenses in the assessable value, keeping in view the judgement of the Apex Court in the case of Continent Federation Joint Venture (2007 (8) TMI 11 - SUPREME COURT OF INDIA) and Uniworth Textile Ltd. (2013 (1) TMI 616 - SUPREME COURT), neither longer period for demand of short paid service tax can be invoked nor penalty under Section 78 of the Finance Act would be imposable. In view of this, we upheld the duty demand only for the normal limitation period, which would be quantified by the original adjudicating authority and would be recoverable from the appellant along with interest. However, imposition of penalty on the appellant under Section 78 is set aside. - Decided partly in favour of assessee.
|