TMI Blog2008 (10) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... n amounts are spent by the C & F agent on behalf of the Principal and later they are reimbursed then such amount would not be liable for service tax - ST/208/2006 - 1196/2008 - Dated:- 15-10-2008 - Dr. S.L. Peeran, Member (Judicial) and Shri T.K. Jayaraman, Member (Technical) (Final Order No. 1196/2008 dt. 15.10.2008 certified on 30.10.2008 in Appeal No. ST/208/2006) Shri A. Mohanan, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agents. A show cause notice was issued demanding service tax of Rs. 1,98,530/- along with interest as applicable and proposing imposition of penalties under Section 76, 77 78 of the Finance Act, 1994. The lower authority confirmed the demand and an amount already paid to the extent of Rs. 12,480/- was adjusted. Interest under Section 75 was demanded. A penalty equal to the service tax amount wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harges etc. on behalf of the Principal. The Principal, on actual basis, on submission of bills, reimburses these expenses. In the case of freight, bills are issued by the transporting companies in the name of the Principal. In the case of telephone, the phone itself is in the name of the Principal. Similarly the bills issued by the courier are in the name of the Principal. It was urged that for co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of services provided by the appellants right from 1999 onwards. A part of the amount received has been included under storage warehousing services in the show cause notice. It was submitted that this amount was nothing but actual reimbursement of expenses. The amounts received by it are only incidental to the activities of the C F agent and it is only by way of reimbursement of actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unts are spent by the C F agent on behalf of the Principal and later they are reimbursed then such amount would not be liable for service tax. We have taken this view in number of cases. The case laws relied on by the learned Chartered Accountant are also relevant. Therefore following ratio of the cases decided by this Bench, we hold that all the reimbursed amounts are not exigible to service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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