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TMI Blog2024 (7) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... ices, etc. After comparing the Balance Sheet, Profit & Loss Account, Ledger with ST-3 Returns, the Department arrived at short payment of Service Tax to the tune of Rs.65,96,250/- for the period 2008-09 to 2011-12. The Show Cause Notice was issued on 26/09/2013 by invoking the extended period provisions. After due process, the Adjudicating Authority confirmed the demand. Being aggrieved, the Appellant is before the Tribunal. 2. The Appellant submitted that their major work is towards carrying on clearing and forwarding (C&F) work for Tata Steel, Bhubaneswar and Tata Steel Ltd, Guwahati. They have been given rates towards handling of materials received by road and rail for dispatching. The consideration received on account of such service i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve given a Certificate that in respect of GTA services provided by the Appellant, Service Tax has been discharged on RCM basis. 5. In respect of Tata Steels transaction, the Learned Consultant takes us to consumable consignment notes and invoices annexed at Page No. 167 to 173 and 144 to 166 of the Appeal paper Book which would clarify that the Appellants have been providing GTA Services to two units of Tata Steels Ltd. 6. The Learned Consultant submits that the Appellant also provides the details of total turnover on account of GTA pertaining to the year under dispute as per the following Table:- Year OCP (I) (P) Ltd. Tata Steel Ltd., Bhubneshwar Tata Steel Ltd., Guwahati Total 2008-09 8,24,711 86,10,576 11,42,538 1,05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging their Service Tax properly and filing their ST- 3 Returns. (ii) In respect of GTA Services, the Service Tax is required to be paid by the recipient on RCM basis. The entire turnover taken by the Department to quantify the demand, is from the Balance Sheet. (iii) In respect of reimbursable expenses, the appellant has proper records to show that they have only received the actual expenses incurred by them. They are under bonafide belief that such reimbursement do not form part of the consideration as has also been held by the Hon'ble High Court in the case of Union of India Vs. Intercontinental Consultants Technocrats Pvt. Ltd., cited supra. 10. In view of the foregoing, the Learned Consultant submits that the confirmed demand in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsport. However, the cost of transportation need not be borne by him. In the present case, the costs of transportation, when incurred by the assessee, have been reimbursed by principal. The value of taxable service in relation to clearing and forwarding operations is the gross amount charged for such services under Section 67. This has to be taken to mean the amount charged for providing the service. In the present case the service tax stands demanded on the total amount paid to the assessee by the principal. Clearly, there is no prescription to include reimbursable expenses in the total value of taxable service. [Emphasis supplied] 16. The Hon'ble High Court in the case of Union of India Vs. Intercontinental Consultants Technocrats Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2015 with effect from May 14, 2015, whereby Clause (a) which deals with 'consideration' is suitably amended to include reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service. Thus, 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. Though, it was not argued by the Learned Counsel for the Department that Section 67 is a declaratory provision, nor could it be argued so, as we find that this is a substantive change brought about with the amendment to Section 67 and, therefore, has to be prospective in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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