TMI Blog2016 (4) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax on CHA and BAS. The quantum of service tax payable on the differential value of CHA services is arrived at 10% of the total invoice value. Accordingly, this Bench directed the appellant to make pre-deposit of ₹ 12.00 lakhs i.e. the entire amount of service tax demanded under the head BAS service for the period 03-04 to 06-07 and on the CHA service of ₹ 64.00 Lakhs (being 10% of the value on which tax has been demanded). The appellants are not contesting the service tax on 10% of the value of CHA services on the invoice value and service tax on the BAS service. Accordingly, the demand confirmed under CHA service on the value of about ₹ 64 lakhs (being 10% value on the invoice) is liable to be upheld. Similarly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposition of penalty is not sustainable. Accordingly, the penalties imposed under Section 76 & 78 of the Act are set aside. - Decided partly in favour of appellant - ST/120/2008 - Final Order No. 40457 / 2016 - Dated:- 9-3-2016 - SHRI R. PERIASAMI, TECHNICAL MEMBER AND SHRI P. K. CHOUDHARY, JUDICIAL MEMBER For the Petitioner : Shri P.C. Anand, Chartered Accountant For the Respondent : Shri K.P. Muralidharan AC (AR) ORDER PER R. PERIASAMI The appellant filed this appeal against the Order-in-Original dated 29.04.2008 passed by the Commissioner of Service Tax, Chennai. 2. The brief facts of the case are that the appellants are providing Custom House Agent Services (CHA) and Business Auxiliary Services (BSA) and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits as per the Tribunal stay order they have paid ₹ 12.00 lakhs which is the differential service tax on the 10% of total invoice value and entire service tax also paid on BAS as per Tribunal stay order. He submits that they are not contesting on the differential service tax paid on CHA BAS services. But, contesting only the reimbursed charges and penalty. He submits that the appellant assessees are rendering CHA service under the category of Pure Agent and the amount reimbursed is the expenditure incurred on behalf of the service recipient and same is excludible from the value of taxable service. He further submits that the reimbursement of expenses under various heads collected in advance from their customers are adjusted towar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also penalty under Section 76 of the Act. We find that the appellant is duly registered with Service Tax Department as Customs House Agent under CHA services. As seen from the findings that the appellants paid service tax partly and failed to pay service tax on the part of the value under CHA services. It is seen that they have paid service tax only on the Service Income and not discharged the service tax on the heads such as a) brokerage received, b) service income (all inclusive), c) transportation income, d) all inclusive charges, e) mandatory charges and f) transportation etc. We find that the demand includes certain amount collected for rendering CHA service and also includes an amount reimbursed from their clients on account of tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pra), and by relying the Hon ble Delhi High Court judgment in the case of International Consultants and Technocrats Pvt. Ltd. Vs. UOI - 2015 (38) STR 246 (Tri.-Ahmd.) allowed the appeals and set aside the service tax demand of reimbursable expenses. By following the ratio of the above decisions, we hold that out of the total demand in excess of 10% is related to reimbursable expenses and the same is not liable to service tax. Accordingly, the demand of service tax on reimbursable expenses to this extent is set aside. 7. As regards the imposition of penalty, considering the overall circumstances of the case and also considering the issue relates to interpretation of statute and levy of service tax whether reimbursable expenses are taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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