TMI Blog2019 (3) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... statute from 01.06.2007 - the impugned order is incorrect and liable to be set aside. Valuation - reimbursement of charges - Held that:- The agreement between the two parties indicate that they entered into contractual obligations for reimbursement of expenses which were in the form of godown rent and the decision of Apex Court in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. [2018 (3) TMI 357 - SUPREME COURT OF INDIA] will apply and any reimbursable expenses during the period in question are not includable in the value of the services rendered. Appeal allowed - decided in favor of appellant. - APPEAL No. ST/401/2011 - A/30204/2019 - Dated:- 5-2-2019 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) And Mr. P.V. SUBBA RAO, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner, on merits and on limitation. The Revenue authorities after following due process did not agree with the contentions raised and confirmed the demands raised along with interest and also imposed penalties. 3. Ld. Counsel would draw our attention to the facts of the case and submit that there are two issues involved one of them being purely rental income wherein C F services are not rendered and another issue wherein C F services were rendered but the lease rent/godown rent was yet to be reimbursed by the principals. As regards the pure rent, it is his submission that appellant had constructed the godowns and rented out the same without rendering any other services and that amount is not includable for the calculation of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing such services in the case in hand, the Clearing Forwarding services. He submits that the impugned order be set aside on limitation also on the ground that assessee being registered with the department was filing returns regularly even if the self assessed are filed, they are to be checked by the authorities. 4. Ld. DR, after reiterating the findings recorded by both the lower authorities submits that identical issue/similar issue is decided by the Larger Bench of the Tribunal in the case of Sri Bhagavathi Traders vs. CCE, Cochin [2011(24)S.T.R. 290 (Tri.-L.B)] wherein the Bench has come to a conclusion that the amounts paid for towards rent of the premises etc. is for rendering the services by the service provider and they ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. As regards the service tax demand of ₹ 6,10,539/- wherein appellant received the amounts as rent but indicated them as reimbursement of charges, we find that the contracts entered by the appellant with the companies who had engaged the services of the appellant as C F agents, they indicate that these amounts are reimbursed. On randomly checking up the agreement entered by the appellant with M/s Navneet Publications (India) Limited (Page no. 258 of the appeal memorandum), we notice that in the agreement, M/s Navneet Publications has offered a fixed service charge of ₹ 18,000/- and appellant was prepared bill for renting of ₹ 7.50 per sq.ft/month to the said company and were also to be reimbursed with telephone and inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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