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2016 (4) TMI 200 - CESTAT CHENNAI

2016 (4) TMI 200 - CESTAT CHENNAI - TMI - Demand of Service tax - Custom House Agent Services (CHA) and Business Auxiliary Services (BSA) - Taxable value adopted by the appellant for the purpose of payment of service tax was not in accordance with the provisions of Section 67 of the Finance Act, 1994 - Assesse paid service tax only on the income accounted as Service Income leaving the income under Transportation Income and Brokerage Income etc., disclosed them by suppressing the facts with an in .....

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e 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, the demand of service tax under BAS service on .....

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Pvt. Ltd. Vs. UOI [2012 (12) TMI 150 - DELHI HIGH COURT], set aside the service tax demand of reimbursable expenses. Also by following the ratio of above decisions, the total demand in excess of 10% is related to reimbursable expenses and the same is not liable to service tax.

Imposition of penalty - Section 76 & 78 of the Act - Held that:- by considering the overall circumstances of the case and also considering the issue relates to interpretation of statute and levy of service tax .....

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ustainable. 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 b .....

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the provisions of Section 67 of the Finance Act, 1994. Scrutiny of records revealed that the appellant assesse has paid service tax only on the income accounted as Service Income leaving the income under Transportation Income and Brokerage Income etc., disclosed them by suppressing the facts with an intention to evade payment of service tax. Hence, a Show Cause Notice dated 24.10.2007 was issued proposing to demand service tax of ₹ 1,12,38,5 67/- for the period from 2002-03 to 2006-07 by .....

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. Ld. Chartered Accountant, Shri P.C. Anand appearing on behalf of the appellant assessee contended that there is no short payment or non payment of service tax as alleged in the order. He submits 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 ser .....

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than the actual amount collected, the customers reimburse the same and it was wrongly inferred as income/profit by the department. He submits that the demand of service tax is barred by limitation and the extended period cannot be invoked against them until and unless malafide intent is proved and no penal provision could also be invoked since they are regularly filing ST3 returns and the department is fully aware of this fact and nothing unearthed to prove the suppression of facts with an inte .....

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ct, since, they have suppressed facts with an intention to evade payment of service tax. 5. After hearing both the sides, we find that the short issue involved in this case is demand of service tax on the CHA services and BAS services provided by the appellant assessee. The adjudicating authority confirmed the service tax demand of ₹ 1,12,38,567/- along with interest and imposed a penalty of ₹ 1,50,00,000/- under Section 78 and also penalty under Section 76 of the Act. We find that t .....

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harges 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 transportation and other charges. We find that while considering the waiver of pre-deposit, this Tribunal discussed the issue at length to decide the quantum of deposit and ordered full payment of service tax on CHA and BAS. The quantum of service tax payable on the differential value of CHA services is arriv .....

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hat 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, the demand of service tax under BAS service on the value of ₹ 67,46,030/- lakhs is also liable to be upheld. 6. As regards the service tax on the reimbursable expenses, it is seen that the adjudicating authority demanded service tax on the amount reimbursed by the CHA and this expenditure was incurred on behalf of service receiver. We find th .....

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