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2017 (12) TMI 1381 - AT - Service TaxBusiness Auxiliary Services - activities in connection with receipt, storage, sale and sale promotion of the goods manufactured and sold by their principal - N/N. 13/2003-ST - Held that: - the appellants are engaged del credere agent and are causing sale of goods received from the principal. The amount paid to the appellant is linked with the sales quantum. The same is pre-determined as per the agreement - appellants are eligible for exemption as commission agent under N/N. 13/2003-ST. - similar issue decided in the case of Premier Enterprises Versus Commissioner of Central Excise, Hyderabad [2009 (3) TMI 123 - CESTAT, BANGALORE], where it was held that Once they are held to be commission agents, they will be entitled for exemption under N/N. 13/2003-ST during the relevant period - benefit of notification allowed. Valuation - includibility - reimbursable expenses - Held that: - It is clear that the various expenditure which were claimed on actual basis to be reimbursed by M/s United Breweries Ltd. are in effect reimbursable expenditures which are incurred on behalf of the principal. These are in terms of pre-arrangement with the principal. It is clear such expenditure which are on behalf of the principal in accordance with agreement which are reimbursed on actual basis without any mark up are not to be included in the assessable value - there is no justification to tax the reimbursable expenditures which are based on pre-arrangements with the principal and are received on actual basis. Appeal allowed - decided in favor of appellant.
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