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2018 (3) TMI 705 - AT - Service TaxValuation - inclusion of reimbursement of expenses - certain amounts received from the clients which the appellant claim to be reimbursable expenses as well as demurrage charges on containers which is not related to any service - Held that: - it is clearly recorded by the lower authority that the demurrage charges accruing to the liners is not subjected to tax. It is the amount which is retained by the appellant which cannot be considered as penal demurrage and is actually attributable to expenses in handling of containers and related activities which are more in the nature of ship husbandry work which is liable to be taxed. Other expenses like telephone charges, survey charges, document charges - Held that: - Apparently, there is no reimbursement on actual basis and the exclusion under the category of 'reimbursement expenses' cannot be admitted for such lump sum payment - the exclusion under the category of 'reimbursement expenses' are subject to the condition that such expenses would have been normally incurred by the client but incurred by the assessee-appellant and later reimbursed by the client on actual basis as per pre-arrangement known to both the parties. In the absence of such factual assertion in the present case, we are not able to interfere with the findings recorded on this count. Appeal dismissed - decided against appellant.
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