TMI Blog2015 (11) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax Rules, 1994. It is also seen that the Supreme Court has dismissed the Civil Appeal No. 171/2009 filed by C.C.E. against CESTAT Final Order [2008 (6) TMI 78 - CESTAT AHMEDABAD] in the case of Reliance Industries Ltd. Vs. CCE which allowed assessee’s appeal and held that expenses incurred on account of reimbursable expenses shall not be includible in the taxable value (Service Tax Review 15 Sept. 2011 page 70). The reimbursable expenses in this case related to travelling expenses of a consulting engineer. In the wake of these judicial pronouncements, the CESTAT Larger Bench judgement in case of Shri Bhagavathy Traders (2011 (8) TMI 430 - CESTAT, BANGALORE) which had distinguished CESTAT judgement in case of Sangamitra Services Agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value for the purpose of clearing and forwarding service as the amount expenses incurred on account of loading and unloading, cargo handling and lorry freight were being reimbursed on the actual basis. 2. Ld. Departmental Representative on the other hand stated that warehousing and other reimbursables were in connection with providing C F agent service and therefore were includible in the assessable value as the service tax is chargeable on the gross amount charged for the service rendered as per Section 67 of Finance Act, 1994. He cited CESTAT judgment in the case of Shri Bhagavathy Traders Vs. CCE, Cochin 2011 (24) STR 290 (Tri.-LB) which held that concept of reimbursement arises only when service recipient was having obligation legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsement of actuals towards freight, labour, electricity, telephone etc. are not includible in the assessable value of C F agent service. Appeal against this judgement was filed before Madras High Court. Madras High Court dismissed Revenues appeal CCE, Chennai Vs. Sangamitra Services Agency 2014 (33) STR 137 (Mad.) and held that reimbursable expenses received by the assessee need not be added to the taxable value relating to clearing and forwarding agents service and that the receipt is for reimbursing expenditure incurred for the purpose and the mere act of reimbursement per se would not justify the contention of Revenue that the same was having the character of the remuneration or commission for the purpose of Rule 6(8) of Service Tax Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
