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TMI Blog2014 (2) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... ged in providing the services under the category of clearing and forwarding agent service/ Business Auxiliary service/ Customs House Agent service etc. The total demand comprises of Rs.16.74 Crores on account of reimbursable expenses received from their receivers while proving services of clearing and forwarding agent service/Customs House Agent service and Rs. 1.46 crores received from various Airlines in providing Business Auxiliary Service. The Ld. Chartered Accountant further submitted that the Ld. Commissioner disallowed the reimbursable expenditure incurred during the course of discharging their service as clearing and forwarding agent /customs house agent service during the relevant period under Rule 5 (2) of the Service Tax (Determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er hand, submitted that Hon'ble Delhi High Court in the Intercontinental's case, have struck down Rule 5 (1) of Service Tax Valuation Rules, 2006, whereas, the present demand of Rs.16.74 Crores has been confirmed by the adjudicating authority in taking recourse to Rule 5 (2) of the said Service Tax Valuation Rules, 2006, hence, the said judgment is not applicable to the facts of the present case. Regarding the amount received as incentive for booking cargo space for airlines, the Ld. A.R. has submitted that the adjudicating authority after carefully analyzing the facts of the present case observed that the activities carried out by the applicant are in the nature of promotion and marketing of service provided by the client, hence, taxable u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respective work orders issued by the Airlines and the services rendered by the applicant. At this stage, prima facie we are of the opinion that the applicant could not able to make out a case in this regard for total waiver of pre-deposit of Service Tax. Consequently, we direct the applicant to deposit 25% of Rs.1.46 Crores within a period of eight weeks from today and on deposit of the said amount, balance dues adjudged would stand waived and its recovery stayed during the pendency of the appeal. Failure to deposit the said amount, would result in dismissal of the appeal without further notice. Compliance to be reported on 13/3/2014.
(Operative part of the order already pronounced in the Court) X X X X Extracts X X X X X X X X Extracts X X X X
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