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2014 (7) TMI 326 - AT - Service TaxValuation of goods - Whether the expenses for arranging transporting from the godown to the premises of the dealers/stockists; the expenses for arranging the loading and unloading of the goods at rake points and at the godown and the godown rent paid by the appellant and which are reimbursed to them by their principals, to be included in the assessable value of the C&F Agents Service or not - Held that:- sofar as the godown rent is concerned, in terms of the agreements, it is the principals, who are required to maintain the godown and hence, it is the principals who are liable to pay the godown rent. In this regard, the appellant act only as their agent. Similarly, it is not disputed that the bills of the labour contractors for arranging loading and unloading of the goods at the rake point and at the godown and the bills of transporters are in the name of the principals and not in the name of the appellant and payment against these bills are made by on behalf of the assessee. Thus, the appellant act as pure agent. Therefore, we are of the view that these expenses would not be includible in the assessable value. Moreover, in any case, since the expenses in question, incurred by the appellant in course of providing the taxable service are reimbursed by the service recipients and the department seeks to include these reimbursable expenses in the assessable value of the services by invoking Rule 5 of the Service Tax Valuation Rules and since this rule has been stuck down by Delhi High Court as ultra vires to the provisions of Section 67 of 1994 Rules in its judgement in the case of Inter-Continental Consultants & Technocrats Pvt. Ltd. (2012 (12) TMI 150 - DELHI HIGH COURT), for this reason also, the reimbursement expenses, in question, would not be includible in the assessable value - Decided in favour of assessee.
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