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2022 (9) TMI 743 - AT - Service TaxValuation - pure agency services or not - Octroi Charges - amount received after 14.05.2015 towards electricity charges from the assessable value of the service provider - exclusion of the electricity charges from the assessable value for the period prior to 14.05.2015 - exclusion of octroi charges from the assessable value for the entire disputed period from the assessable value - if electricity consumed by the appellant for providing the services of managing “IMP watch packing units and warehouse for accessories and sunglasses” can be called as expenses incurred as pure agent? HELD THAT:- It is obvious that the electricity is consumed in the said operation as a primary input. The entire warehouse and packing activities are located in the premises located at Hosur. A large number of people work in the said premises and activity of packing, de-packing sorting etc. goes on within the premises. Inclusion of octroi charges for the period prior to 14.05.2015 - HELD THAT:- Considering the observation of Commissioner (Appeals) in the impugned order, no merits found in the appeal filed by Revenue for inclusion of value of electricity charges into the assessable value by invoking Rule 5(1) of Service Tax (Determination of Value) Rules, 2006 for the period prior to 14.05.2015. For the same reason, there are no merit in the appeal filed by SLP in respect of inclusion of electricity charges for period after 14.05.2015 - the appeal of Revenue on the count of inclusion of octroi charges for the period prior to 14.05.2015 by invoking Rule 5 of Service Tax (Determination of Value) Rules, 2006 cannot be upheld. Inclusion of the octroi charges collected by SLP from TIL for the period after 14.05.2015 - HELD THAT:- Any payment of octroi by SLP has to be treated as payment done by SLP on behalf of the owner of the goods, namely, TIL. The question raised by Revenue in its appeal regarding inclusion of octroi has been adequately answered by SLP in the above arguments. Under these circumstances, there are no merit in the appeal filed by Revenue for inclusion of the octroi paid by SLP and recovered from TIL in the assessable value. The appeal of revenue on this count is therefore, rejected. There are no merit in the appeals filed by Revenue as well as that filed by SLP and therefore, both are rejected.
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