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2023 (6) TMI 500 - CESTAT CHENNAI
Valuation - Custom House Agent Services - inclusion of reimbursable expenses in assessable value or not - LCL charges - deconsolidation charges - transportation charges - DO charges - terminal handling charges - demurrage charges - documentation charges - other charges from their clients - Department was of the view that the appellant ought to have included these expenses in the taxable value to discharge service tax liability - Time Limitation.
HELD THAT:- From the SCN itself it is seen that the demand has been made on the reimbursable expenses incurred by the appellant. Further, the allegation as per para 3.2 of the SCN that appellant has not included the charges in the nature of deconsolidation charges, transportation charges, DO charges etc. incurred by them for providing CHA services. It is understandable that such charges are collected by the appellant from their clients and paid to the concerned service provider.
It is settled position that the reimbursable expense is not subject to levy of service tax as per the decision of the Hon’ble Apex Court in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 - SUPREME COURT]. After analysing the facts and going through the evidence, we are of the considered view that the decision of Hon’ble Apex Court in Intercontinental Consultants and Technocrats Ltd. will be squarely applicable to the facts of the case.
The demand cannot sustain. The impugned order is set aside. Appeal is allowed.