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2015 (11) TMI 906 - AT - Service TaxValuation - CHA service or C & F Agent service - inclusion of reimbursement of expenses - Held that:- in Circular No.119/13/2009-ST dated 21.12.2009, CBEC had clarified the position. In fact the Trade Note is based on the circulars. In paragraph 3 of the said Circular, it was observed and reported that Board had clarified on 6.6.1997 that service tax would be charged on the service charges only and statutory levy and other reimbursable charges would not be included in the taxable value. The Board also observed that in case where there is lump sum payment towards reimbursible as well as service charges, service tax would be charged on 15% of the gross value only. In the clarification, it was stated that with the introduction of Valuation Rules for service tax, the previous circulars become invalid. The period covered by the orders before us is prior to April 2006. Therefore the guidelines issued by CBEC would be squarely applicable to the facts of this case. Appellant has taken registration as a CHA has been discharging service tax liability on that basis and the activities undertaken by the appellant are the ones which have been taken note of by the CBEC. Even in the case of clearing and forwarding agent also, the Tribunal had taken a view that reimbursement on account of loading and unloading, packing/unpacking, freight, etc., cannot be included (Apco Agencies vs. Commissioner, Calicut as reported in [2008 (1) TMI 71 - CESTAT, BANGALORE]. In the case of Gudwin Logistics vs. CCE, Vadodara: [2011 (12) TMI 262 - CESTAT, AHMEDABAD ], it was clearly held that stand taken by the Revenue that the activities similar to the one under consideration before us amounts to rendering of C & F Agent service is not correct and it was held that the services has to be classified as CHA service only - stand taken by the Revenue that services rendered by the appellant in the capacity of CHA service need reclassification as C & F agent service cannot be sustained - Decided in favour of assessee.
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