TaxTMI 
TaxTMI 
2010 (11) TMI 69
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....he purview of gross value of taxable service to avoid tax liability. The expenses which are essential for execution of the taxable service and no service can be rendered without such expenditure, that cannot be out of ambit of tax. He categorically submits that certain expenditure which are inventible to provide taxable service and that cannot be disintegrated nor separable but are inextricably connected with the service provided such expenditure contributes to the value of service which by no stretch of imagination can be ignored. Therefore, following the Division Bench decision in the case ofNaresh Kumar & Co. Pvt. Ltd. vs. CST, Kolkata reported in 2008 (11) S.T.R. 578 (Tri. - Kolkata), Shri Sumit Kumar prays to allow appeal of Reve....
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....ding and unloading expenses were subject matter of consideration before him. Learned Commissioner following the decision of Single Member Bench made on 08/12/2006 in the case of S. Jayashree vs. CCE, Mangalore reported in 2007 (6) S.T.R. 389 (Tri.-Bang.)and ignoring Division Bench decision made on 29/5/2009 in the case of Naresh Kumar & Co. Pvt. Ltd. vs. CST, Kolkata reported in 2008 (11) S.T.R. 578 (Tri.-Kolkata) allowed the relief to the respondent holding in para 10 of the order that the expenses like transportation charges, loading and unloading charges, rent of godown and clerk salary are not includible in the taxable value of service of C&F Agent and service tax is leviable only on remuneration for services pr....
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....to deal with consideration that is also immaterial to Revenue. Service Valuation Rule of 1994 contributes to the above fiscal philosophy and the destination based consumption tax submit for taxation on the gross value of taxable service which is measure of taxation. The gross value takes into its fold entire cost of service enabling that to be performable. Therefore, by no stretch of imagination neither the arrangements of the parties nor their mutuality or nomenclature or format of their agreement and mode of discharge of consideration shall prevail on the law relating to service tax. Legislature accordingly intend that the gross value of the service shall be the measure of value for taxation whether paid as consideration directly or by re....
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....accountants, security agencies, tour operators, event managers, travel agents etc." 7. The nature and character of service tax has also been explained by Apex Court in para 22 of the judgment Association of Leasing & Financial Service Companies vs. Union of India and others reported in - (2010-TIOL-87-SC-ST-LB). "22. In All India Federation of Tax Practitioners' case (supra), this Court explained the concept of service tax and held that service tax is a Value Added Tax ('VAT for short) which in turn is a destination based consumption tax in the sense that it is levied on commercial activities and it is not a charge on the business but on the consumer. That, service tax is an economic concept based on the principle of equivalence....
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.... Thus, the taxable event is each exercise/activity undertaken by the service provider and each time service tax gets attracted. The same view is reiterated broadly in the earlier judgment of this Court in Godfrey Phillips India Ltd. v. State of U.P. [(2005 (2) SCC 515] in which a Constitution Bench observed that in the classical sense a tax is composed of two elements : the person, thing or activity on which tax is imposed. Thus, every tax may be levied on an object or on the event of taxation. Service tax is, thus, a tax on activity whereas sales tax is a tax on sale of a thing or goods. Law as it stood before the Constitution (Forty-Sixth Amendment) Act, 1982:" 8. When logic of service tax incidence calls for taxation of service on ....