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TMI Blog2024 (2) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... o various customers. It is alleged that in the process of rendering said services, certain expenses are incurred viz. inspection charges, property evaluation fees, postage charges etc. during the period April 2010 to March 2016. Alleging that the service tax was not paid by including the value of the said expenses in their gross transaction value, show-cause notices were issued proposing recovery of total service tax of Rs.20,44,84,816/- for the said period along with interest and penalty. On adjudication, the learned Commissioner dropped the notice. Hence, the Revenue is in appeal. 2. At the outset, the learned AR for the Revenue reiterating the grounds of appeal submits that even though expenses incurred by the respondent towards postage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to subject to service tax levy as there is no consideration involved. I have verified the year-wise figures of taxable value proposed in the SCN and find that same are the figures reflected under the sub-head 'postage telegram and telephone' under the head 'Administration and other Expenses' in the expenditure account of the notice for the respective years. In this regard, I have perused the audit objection by CERA, based on which the demand is proposed. The findings of CERA was that the notice followed the practice of recovering expenses incurred towards providing gold loans such as inspection fee, fees for loans, property valuation fee, monthly/periodical postage charges, inspection fees etc, which were credited in the corresponding accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , indicating that the notices having recovered/collected any amount in lieu of the said expenses from their customers. I also find that credit entries finding mention in these accounts are in the nature of reversal / rectification entries having no bearing on taxability. As such, I find that there is no substance at all in the allegations leveled in the SCN. 6. In the Review Order, only the statutory principle of law has been reiterated and no evidence has been adduced to negate the specific findings of the adjudicating authority holding that the service tax on all these expenses, by including the same in the gross transaction value has been discharged by the respondent. In the result, the impugned order is upheld and the Revenue's appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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