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TMI Blog2016 (9) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... d to their principals, they received reimbursement of various expenses such as rent, loading and unloading, post and photography, printing and stationary, telephone charges etc. incurred by them for and on behalf of their principals. Revenue entertained the view that in terms of Section 67 of the Finance Act, 1994 readwith Rule 5 of Service Tax [Determination of Value] Rules, 2006 as also Rule 6 (8) of Service Tax Rules, 1994, service tax is payable on gross amount received by the respondent while providing the C&F service. The Original Authority, vide his order dated 24/9/2009 confirmed the demand of service tax on the above lines, to the extent of Rs. 17.86 lakhs. When this order was challenged before the Commissioner (Appeals) he held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and having the expenses amount confirmed by Rasi Seeds officials prior to incurring the same. v. The C&F Agent shall be reimbursed other expenses as described in SCHEDULE - 3. vi. Statutory, Landing charges like loading unloading, Local Cartage, Telephone Fax, Xerox Charges, Courier Charges etc. paid by the C&F Agent with prior approval of Rasi Seeds officials will be reimbursed on a monthly basis subject to submission of bills and vouchers. All bills to reach Rasi Seeds, Hyderabad before the 7th of following month". As seen from the above, the respondent have been paid remuneration of Rs. 10,000/- + service tax per month towards their charges for services. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he light of the above decision of the Larger Bench, we note that the service recipient decided and agreed to reimburse all the expenses for running the C&F agency. In fact we note that Hon'ble Madras High Court in the case of Commissioner of ST, Chennai Vs. Sangamitra Services Agency-2014 (33) STR 137 (Mad), has held that if the receipt is for reimbursing the expenditure incurred for the purpose of providing clearing and forwarding agent services, the same will not form part of the value of the services. The Hon'ble High court of Delhi in the case of Intercontinental Consultants & Technocrats Pvt. Ltd, Vs. UOI-2013 (29) STR 9 (Del) has also examined the said issue and has held in favour of the assessee. Tribunal in the case of Pinna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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