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CCE, Indore Versus M/s Virmani Enterprises

2016 (9) TMI 1025 - CESTAT NEW DELHI

Service tax liability - valuation - inclusion of reimbursement of expenses - clearing and forwarding services - gross amount received by the respondent while providing the C&F service - Held that:- by following the decisions of the Hon'ble High Court of Delhi in the case of Intercontinental Consultants & Technocrats Pvt. Ltd, Vs. UOI [2012 (12) TMI 150 - DELHI HIGH COURT] and also the decision of Hon'ble Madras High Court in the case of Commissioner of ST, Chennai Vs. Sangamitra Services Agency .....

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llant. None - for the Respondent. ORDER The present appeal has been filed by Revenue against the order dated 31/3/2010 passed by the Commissioner (Appeals), Indore. The respondent is providing the services of clearing and forwarding to various clients under agreements/contracts and paying service tax for such services. Besides the commission for the services rendered to their principals, they received reimbursement of various expenses such as rent, loading and unloading, post and photography, pr .....

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above lines, to the extent of ₹ 17.86 lakhs. When this order was challenged before the Commissioner (Appeals) he held that the reimbursement on account of actual expenses incurred on behalf of principals will not be liable to service tax. Revenue is in appeal before us against the order of the Commissioner (Appeals). 2. We have heard Shri K. Poddart learned DR for the appellant/ Revenue and no one appeared for the respondent. 3. We have examined the contract entered into between the respon .....

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s noticed the C&F Agent shall be solely liable. iii. Rasi Seeds shall pay to the C&F Agent a sum of ₹ 10,000/- (Rupees Ten Thousand only) plus 8% service tax per month towards their charges for their services as agreed between the parties which is inclusive of clerical and other services rendered to Rasi Seeds. TDS will be deducted as applicable. These charges shall be______ and it shall not be increased under any circumstances. iv. Any taxes and levies such as sales tax, shops and .....

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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 ₹ 10,000/- + service tax per month towards their charges for services. It is also seen that the respondent will be entitled to reimbursement of taxes as well as various expenses incurred by them. The controversy in the present case is whether .....

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n any manner shall be deemed to be the gross amount of remuneration of commission (by whatever name called) paid to such agent by the client engaging such agent. 4. We find that the present controversy has been before the Tribunal in several cases, such as Larger Bench of the Tribunal in the case of Sri Bhagavathy Traders Vs. CCE Cochin-2011 (24) STR 290 (Tril-LB) has observed that the terms of the agreement entered into between the service recipient and service provider has to be examined and w .....

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