Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 21 - CESTAT NEW DELHIValuation - inclusion of reimbursement expenses in assessable value - Department was of view that the expenses which the appellant has got reimbursement from the service recipient were in the nature of freight, cartage, CFA, LOC, packing material, refreshment charges, drug licence charges, electric bills and telephone charges - suppression of taxable value - C&F agent service. Held that:- On perusal of the type of expenditures which have been reimbursed to the appellant in certain items like drug licence charges, telephone charges incurred on behalf of the service recipient it appears that the appellant have got reimbursement of actual expenditure incurred by him on behalf of his principle (consignor) and here he has only worked as a facilitator and a pure agent on behalf of his principle and therefore prima facie the appellant has a strong case to claim non-inclusion of such reimbursed amount from the taxable income. However, the other charges which he got reimbursed whether that is includable in his taxable value or not as per the provision of Section 67 of Finance Act, 1994 can only be decided by examining whether such expenditure that has been incurred on behalf of principle consignor are essential expenditures for providing the service of Consignment and Forwarding agents service and thus includable in the taxable value or not, is to be decided by getting necessary information with regard to individual expenditure reimbursed to the appellant. Matter remanded to the Original Adjudicating Authority with a direction that the necessity of each expenditure has to be examine to ascertain whether such expenditure was necessary on the part of the appellant in performing his work or same was incurred by the appellant only on behalf of the service recipient and he worked only as a pure agent with regard to these expenditures - appeal allowed by way of remand.
|