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2017 (8) TMI 1232 - AT - Service TaxValuation - includibility of reimbursement of expenses - Clearing and Forwarding Agency Service - various expenses such as rent, postage and stationary, telephone charges etc, under claim that these expenses are incurred by them for or on behalf of their principals - taxability - Held that: - For providing service minimum input services are required such as rent, postage and stationary, telephone charges etc, without these input services, Clearing and Forwarding service cannot be provided, therefore these services are required for providing Clearing and Forwarding service and has to be part and parcel of the gross value of the service i.e. Clearing and Forwarding Agency - service tax is chargeable on such reimbursement. Penalties - Held that: - the issue was contentious and various decisions were given by this Tribunal, the matter also reached to the Larger Bench - It is also fact that appellant is otherwise discharging the service tax on the commission received towards providing Clearing and Forwarding Agency service - it cannot be said that appellant had intention to evade service tax, therefore appellant have made out a fit case for waiver of penalties invoking Section 80 of the Finance Act. Appeal allowed - decided partly in favor of appellant.
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