TMI Blog2017 (8) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 18-7-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri D.H. Nadkarni, Advocate for Appellant Shri M.K. Sarangi, Addl. Commr. (A.R) for respondent ORDER Per : Raju The appellant M/s. S.C. Packers entered into a contract with M/s. Tata Chemicals Ltd. in terms of the said contract. The appellants were required to undertake various activities for M/s. Tata Chemicals Ltd. A demand show cause notice was issued seeking to recover the service tax under the head of Clearing and Forwarding Agent Service . The demand was confirmed by the Commissioner and penalty under Section 76, 77 78 were imposed aggrieved by the said order the appellants are before Tribunal. 2. Learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als Ltd. In terms of the schedule to the agreement M/s. Tata Chemicals Ltd. were required to re-imburse the variable expenses, fixed expenses (godown rent/other operating expenses) and secondary freight expenses, apart from the above expenses. M/s. Tata Chemicals Ltd. were also required to pay the service tax and octroi wherever applicable. In the said letter of appointment schedule for the fixed expenses, variable expenses and service charges was also annexed. 2.1. Learned Counsel for the appellant argued that the service provided by them is not C F service but packaging service. Ld. Counsel further argued that the demand is barred by limitation as the issue regarding includibility of reimbursement in the assessable value was referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een argue that the issue regarding inclusion of reimbursement charges was not settled till the decision of Larger Bench of Tribunal in the case of Sri Bhagvathy Traders (supra). It has been argued that in view of the said decision since most of the charges collected by them are in the nature of reimbursement they had bona fide belief that the same are not includible in the value of services. The second issue raised is that the Hon ble High Court of Delhi has held under Rule 5 of the Service Tax (Determination of Value) Rules, 2006 as ultra vires of Section 67 of the Finance Act. It has been argued that in view of the said decision, it is not open to Revenue to include the value of reimbursement in the assessable value. The entire value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n connection with Goods Transport Agency Service, abatement of 75% was not given before determining service tax liability. (c) Activity of repacking from bulk pack of 50 Kgs of salt to 1Kg or kg as per requirement of Tata Chemicals Limited would not get covered under Clearing and Forwarding Agent Service. (d) An amount of ₹ 9,02,568/- is paid for the disputed period, required to be taken into consideration in determining final liability, if any. (e) Service tax paid by M/s. Tata Chemicals on GTA Service needs to be deducted in determining final liability, if any. These issues have not been considered by the original adjudicating authority due to non co-operation of the appellant. In the interest of justice, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
