TMI Blog2018 (12) TMI 1778X X X X Extracts X X X X X X X X Extracts X X X X ..... ere it was held that only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax. Impugned order upheld - appeal dismissed - decided against Revenue. - ST/120/2009, CO-53/2009 - FO/77332/2018 - Dated:- 4-12-2018 - MR. P. K. CHOUDHARY, MEMBER (JUDICIAL) AND MR. V. PADMANABHAN, MEMBER (TECHNICAL) Shri Kartik Kurmi Rajesh Sharma, Advocates for the Appellant Shri K. Chowdhary, Suptd. (A. R.) for the Respondent ORDER The facts of the case in brief are that the Respondent-Assessee M/s. P. D. Prasad and Sons (P) Ltd. are engaged in providing Custom House Agent Service (CHA Service). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/- and Education Cess ₹ 8,31,557/-is hereby dropped. (iii) M/s. P. D. Prasad Sons s Pvt. Ltd., is hereby directed to pay interest of ₹ 4,015/- as per Section 75 of the said Act for delayed payment of Service Tax for the month of November 03. (iv) Penalty of ₹ 5,724/- is imposed upon M/s. P. D. Prasad Son s Pvt. Ltd., in terms of Section 76 of the said Act. Being aggrieved, the Department has filed the present appeal before the Tribunal on the following grounds:- (i) The definition of taxable service as per Section 65(105)(h) of the Finance Act, 1994 is very wide and inclusive one. By inclusive definition the CHA services have brought in its fold a wide gamut of services incidental and ancillary to and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble expenses for the period 2002-03 under CHA and accordingly, the appeal should be rejected. 5. Heard both sides and perused the appeal records and the cross objection. 6. We observe that the dispute in the present appeal is whether the amount reimbursed by the clients of the Respondent is liable to Service Tax. Extracts of Relevant Statutory Provisions [as applicable during the material period] 6.1 Section 65 : Definition (35) Customs House Agent means a person licensed, temporarily or otherwise, under the regulations made under sub-section (2) of section 146 of the Customs Act, 1962 (52 of 1962); (105) taxable service means any service provided or to be provided- (h) to any person, by a custom house age ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vii. The cost of parts or other material, ..; and viii. Interest on loans. Explanation2.- Where the gross amount charged by a service provider is inclusive of service tax payable, the value of taxable service shall be such amount as with the addition of tax payable, is equal to the gross amount charged. Explanation 3 .- For the removal of doubts, it is hereby declared that the gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. 6.4 Circular No: F. No. B/43/1/97-TRU, dated 06.06.1997 2.4 It is clarified that in relation to Custom House Agent, the service tax is to be computed only on the gross service charges, by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that reimbursable expenditure can included in the value of taxable services only w.e.f. 14-05-2015. We observe that the dispute in the present case is squarely covered by the following decisions:- (i) Excel India Pvt. Ltd. Vs. Commissioner of Service Tax, Bangalore [2007 (7) S.T. R. 542 (Tri.-Bang.)] In this case, the appellants during the course of providing CHA service incurs various expenses on behalf of clients towards the delivery, priority handling, break bulk and courier charges. These expenses claimed as reimbursement on equalized basis, which results in excess or shortfall in recovery of expenses incurred. The Adjudicating authority confirmed the demand on the surplus balance appearing in the Expense Reimbursement Bilin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in certain cases the appellants had incurred less cost and in certain cases, they had incurred more cost. In any case, the profit or loss incurred in respect of activities which are not related to CHA activities should not be the concern of the Department for the purpose of collecting service tax. Present Status: No appeal is preferred by the Revenue against the said order. This judgment is referred in Bax Global s another case on the same issue, vide Chennai Tribunal Order dated 18.09.17, reported in 2017 (9) TMI 1264. Matter decided in favour of the assessee [Para 5.5 of the Order refers]. Apart from that in other various cases this judgment has been referred. (iii) International Shippers Traders Pvt. Ltd. vs. Customs and Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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