2012 (6) TMI 119

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... re not allowed deduction. After allowing the said deduction, the service tax liability works out around at Rs.20.00 lakhs, out of which they have already deposited Rs.9.95 lakhs.   3. After hearing both sides, we find that the appeal itself can be disposed of at this stage. Hence, after waiving the requirement of predeposit of service tax and penalty, we take up the appeal itself for disposal.   4. Briefly stated the facts of the case are that the appellants are engaged in providing CHA Services and are holder of service tax registration. A show-cause cum demand notice was issued against them on the ground that they suppressed the amount of agency commission in the guise of income from clearances and on the ground the appellant .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... considered the submissions and perused the records. The demand in this case has been made on the billing basis of ledger and balance sheet. The appellants made claim before the ld. Commissioner for deduction of reimbursable expenses. However, they could not produce the evidence in support of their claim. The appellants are in a position to produce the requisite documents. Undisputedly, these documents were not produced before the ld. Commissioner. Therefore, the same are required to be examined by the ld. Commissioner. The Larger Bench of the Tribunal in the case of Sri Bhagavathy Traders Vs. Commissioner of Central Excise, Cochin (cited supra) has prescribed the following guidelines :   6.2 Similar is the situation in the transaction .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... erable by the CHA as reimbursement, that too on actual basis. These Circulars cannot be held to be in support of the claim of the assessee that they can split part of the amount as reimbursable expenses and the rest as towards service charges.   6.4 The claim for reimbursement towards rent for premises, telephone charges, stationery charges, etc. amounts to a claim by the service provider that they can render such services in vacuum. What are costs for inputs services and inputs used in rendering services cannot be treated as reimbursable costs. There is no justification or legal authority to artificially split the cost towards providing services partly as cost of services and the rest as reimbursable expenses.   We also find th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X