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2015 (11) TMI 1104 - AT - Service TaxValuation of service - Includibility of warehousing and other reimbursables in the value of C&F agent service - Held that:- Madras High Court in the case of CCE, Chennai Vs. Sangamitra Services Agency [2013 (7) TMI 862 - MADRAS HIGH COURT] held that reimbursable expenses received by the assessee need not be added to the taxable value relating to clearing and forwarding agents service and that the receipt is for reimbursing expenditure incurred for the purpose and the mere act of reimbursement per se would not justify the contention of Revenue that the same was having the character of the remuneration or commission for the purpose of Rule 6(8) of Service Tax Rules, 1994. It is also seen that the Supreme Court has dismissed the Civil Appeal No. 171/2009 filed by C.C.E. against CESTAT Final Order [2008 (6) TMI 78 - CESTAT AHMEDABAD] in the case of Reliance Industries Ltd. Vs. CCE which allowed assessee’s appeal and held that expenses incurred on account of reimbursable expenses shall not be includible in the taxable value (Service Tax Review 15 Sept. 2011 page 70). The reimbursable expenses in this case related to travelling expenses of a consulting engineer. In the wake of these judicial pronouncements, the CESTAT Larger Bench judgement in case of Shri Bhagavathy Traders (2011 (8) TMI 430 - CESTAT, BANGALORE) which had distinguished CESTAT judgement in case of Sangamitra Services Agency (2007 (7) TMI 33 - CESTAT, CHENNAI) has since been overtaken by Madras High Court judgement in the case of Sangamitra Service Agency (supra) and the judgement in case of Reliance Industries Ltd. (supra). - Decided in favour of assessee.
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