TMI Blog2008 (1) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... & freight are not to be added to the value of service - appellants were under the bona fide belief that cost/expenses incurred by them are not includible in the consideration of the value of service rendered by them so penalty not imposable u/s 76 & 78 - ST/327 and 328/2007 - 48 and 49/2008 - Dated:- 17-1-2008 - Shri T.K. Jayaraman, Member (T) [Order]. -1. These appeals have been fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth sides. The learned Advocate pointed out that the Appellate Authority has failed to consider the various submissions made by them in the proper perspective. He stated that the Lower Authorities have erred in not following the binding circular of the Board in letter no. F. No. B43/7/97 TRU, dated 11-7-1997; wherein the Board has clarified that only the remuneration relating to services can be ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expenses like loading, unloading charges and freight are not to be added to the value of service. He stated that the imposition of penalty under Sections 76 78 is arbitrary and illegal. The appellants were under the bona fide belief that cost/expenses incurred by them are not includible in the consideration of the value of service rendered by them. He also cited that there are a large numb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the well-settled decisions of the Tribunal in the following cases (a) U.M. Thariath Company v. CCE, Cochin - 2007 (8) S.T.R.161(Tri. - Bang.) (b) Sangamitra Services Agency v. CCE, Chennai - 2007 (8) S.T.R. 233 (Tri Chennai) (c) Malabar Management Services Pvt. Ltd. v. CST, Chennai - 2008 (9) S.T.R. 483 (Tri.-Chennai) = 2007-TIOL-1949-CESTAT-MAD. (d) B S Refri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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