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2024 (5) TMI 668 - CESTAT CHENNAIValuation of service - Clearing & Forwarding Agency Service - inclusion of reimbursed freight charges in the taxable value of services for discharging service tax - Extended period of limitation - HELD THAT:- It is seen from the definition of ‘Clearing & Forwarding Agent’ that such Agent would require to undertake transportation of goods also. Undisputably, The amounts which are subject to levy of service of tax in the present case are reimbursements received by the appellant from M/s.ACCL The Department has been carried away by the freight charges received by appellant on consignment notes issued by appellant for transportation under Goods Transport Agency Agreement. The service tax on the freight charges received by the appellant from M/s.ACCL after issuing consignment notes has already been discharged by M/s.ACCL as the service recipient - it is very clear from the SCN that the demand has been made only in regard to reimbursable expenses received from M/s.ACCL as part of C&F activity and not for the freight charges received with regard to GTA Agreement. The issue as to whether the reimbursable expenses is to be included in the taxable value for the period prior to 2015 is settled by the decision of Hon’ble Delhi High Court in the case of INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. VERSUS UOI. & ANR. [2012 (12) TMI 150 - DELHI HIGH COURT] as affirmed by the Hon’ble Supreme Court in UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 - SUPREME COURT] where it was held that 'only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax.' Extended period of limitation - HELD THAT:- The demand has been raised on freight reimbursable expenses accounted by the appellant as per figures indicated in the books of accounts. The Department has not established any positive act of suppression on the part of the appellant. The issue as to whether the reimbursable expenses has to be included in the taxable value was under litigation and also put into a situation of bringing forth amendment under Section 67 of the Finance Act, 1994. Taking all these aspects into consideration, the issue is interpretational in nature and therefore the invocation of extended period cannot sustain. The issue on limitation is also answered in favour of the appellant. The impugned order is set aside - Appeal allowed.
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