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2021 (8) TMI 450 - AT - Service TaxValuation of taxable service - clearing and forwarding services - inclusion of reimbursable charges received from the customers in the taxable value - man power supply service - taxability of packaging activity done by the appellant. Inclusion of reimbursable charges received from the customers in the taxable value - HELD THAT:- It is brought out from facts that the appellant has not included the charges in the nature of electricity, diesel generator charges, fuel charges, telephone charges, water charges, stationery chargers etc. incurred for providing clearing and forwarding services in the taxable value. These are actual reimbursements made to the appellants by their customers - reliance can be placed in the case of INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. VERSUS UOI. & ANR. [2012 (12) TMI 150 - DELHI HIGH COURT] - Since the activity of packing and repacking is a manufacturing activity the demand of service on such activity cannot sustain. Demand under man power supply service - HELD THAT:- Admittedly, the services were provided to service recipient situate in SEZ. It is also brought out that as per Notification NO.40/2012-ST dated 20.06.2012, the service tax is exempted - Only because the appellant did not produce the above documents, the exemption as per Notification No.40/2012-ST was denied and the department has demanded service tax. It is seen from Annexure to the reply of SCN that the appellant has produced the document Form A2 along with reply. Section 51 of SEZ Act, 2005 is to have an overriding effect. The denial of the benefit of exemption by relying upon procedural requirement of a notification would be against the provisions laid down in the SEZ Act - the demand of service tax under Man power service cannot sustain. This issue is found in favour of the appellant and against the respondent. Packing and repacking services - demand of service tax under BSS - HELD THAT:- The demand of service tax under ‘Business Support Service’ on the activity of packing and repacking cannot sustain and requires to be set aside which we hereby do. It is also to be stated that definition of ‘Business Support Service’ as contained in Finance Act, 1944 does not mention such activity of packing/repacking. For these reasons, the demand cannot sustain. Appeal allowed - decided in favor of appellant.
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