9911796707
TMI Blog2018 (10) TMI 1556X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 of the Finance Act, 1994. The ld. Commissioner passed the said order and revised the order passed by the Joint Commissioner of the Service Tax vide Order-in-Original No.12/2007 dated 09.01.2007. In the present appeal, the appellant is seeking to set aside the Order-in-Revision, and reinstate the order passed by the Joint Commissioner. 2. For the purpose of the present appeal, the facts in brief are as follows: The appellant had entered into several agreements with various customers including M/s. Birla Corporation Ltd. for the following services: a) Clearing and Forwarding Agent Services b) Goods Transport Services c) Commission Agent Services, in respect of the goods manufactured by them. The department issued show cause notice prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entered into separate agreement for performing sales promotion activities as commission agents. This service is taxable under Business Auxiliary Service from 09.07.2004 onwards but their agreement was for 2001-02 to 2003-04 only. Hence appellant is not liable for service tax to the tune of Rs. 99,911/-. iv) Regarding transportation charges, ld. Advocate submitted that it may be seen from the copy of their agreement with the principals that it is for transportation of goods from the godown to the cutomer's place. Those transportation expenses were separately billed by them to the client and not liable to service tax. v) He however admitted that the appellant is liable to payment of service tax amounting to Rs. 3,91,180/- which has been r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of payment of Service Tax. Out of the demand of Rs. 9,77,199/- (corrected figure) the noticee have claimed deduction on amount of reimbursement of certain expenses, selling commission, outward transportation charges from the clients and on the opening balance of the ledger accounts and inter account adjustment in the nature of transfer entries having no financial effect. As per Rule 5 of Service Tax (determination of value) Rules, 2006, the expenditure of cost, interalia, incurred by the service provider as a true agent of the recipient of service, shall be excluded from the value of the taxable service if the payment made by the service provider on behalf of the recipient of service has been separately indicated in the invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them with respect to selling commission received since their agreement was for 2001-02 to 2003-04 only. Hence the Show Cause Notice proposing levy of Service Tax on the amount of selling commission to the tune of Rs. 99,911/- is not applicable on them. Regarding transportation charges included in the taxable value, the said noticee submit that those are not includible in view of the judgement delivered in the case of V. Mathari & Co. Vs. CCE, Cochin reported in 2003 (157) ELT 101 (Tri.Bang.). In the instant issue too, it is seen as per the copy of their agreement with the principals and separate bills for the transportation charges, that they had entered into separate agreements with the principal for transportation of goods from the godo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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