TMI Blog2009 (3) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... hri V.P.C. Rao, SDR, for the Respondent. [Order per M.V. Ravindran, Member (J)]. - This appeal is directed against the 0-I-A No. 321/2005-C.E., dated 7-12-2005. The relevant facts that arise for consideration are as under: During the course of audit of the appellant, it was noticed that the appellants had not declared the total value of service rendered by them and had also not paid the Service Tax liabilities in full for the period 1999- 2000 to 2002-03. A show cause notice was issued demanding the differential service tax of Rs. 19,10,491/ - along with interest and with penal provisions. The adjudicating authority vide his order confirmed the differential Service Tax of Rs. 1,21,143/- along with interest and imposed a penalty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld submit that it is seen from the invoices that the appellant is billing from the customer for the export charges/dues paid by him to port authorities, hence there is a Service Tax liability. 4. We have heard both sides and considered the submissions made at length. 5. The issue involved in this case is whether the appellant is liable to service tax on the amount collected by him from his customers, for the export charges paid to the port authorities. The specimen invoice produced by the Counsel indicate the charges as under:- 6. It can be seen from the above reproduced invoice, appellant is charging his client export dues at the rate of Rs. 55 per MT and it is also indicated in the invoice clearly that Service Tax of 5% is alre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny cases the CHA undertakes turnkey imports and exports where a lump sum amount is charged from the client (or undertaking various services. In these cases, the lump sum amount covers not only the 'agency commission' fee but also other expenses and no separate break-up is given in respect of these expenses. It has been decided that in such cases, the value of the taxable service tax shall be 15°/s of the lump sum amount charged to the client. The CGAs, may be advised to show the service charges as 15Th of such lump sum amount of the bills. Service tax of 5% will be chargeable on the above 15%". 7. It can be seen from the above reproduced paras, a CHA can claim the benefit of reduction of reimbursable expenses from the gross service charge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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