Customs House Agent service tax dispute: reimbursable expenses excluded from taxable value; predeposit waived and recovery stayed.

In proceedings on Customs House Agent service, the Tribunal found a prima facie case for interim relief where Board clarification indicated that statutory levies and reimbursable expenses paid on behalf of clients are excluded from service tax computation, which applies only to gross service charges. On that material, the expenses in the case appeared reimbursable, so waiver of predeposit of service tax, interest and penalty was granted and recovery was stayed pending appeal.

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Issues: Whether the appellant was entitled to waiver of predeposit of service tax, interest and penalty in proceedings concerning Customs House Agent's service, and whether reimbursable expenses incurred on behalf of clients were to be excluded from the taxable value.

Analysis: The order records that, for the purpose of interim relief, the appellant had made out a prima facie case in view of the Board's clarification that amounts paid by a Customs House Agent on behalf of clients by way of statutory levies and reimbursable expenses are not to be included in the computation of service tax, which is to be levied only on gross service charges. The order also notes that the expenses in the present case appeared to be reimbursable on the material placed.

Conclusion: Waiver of predeposit was granted and recovery was stayed pending the appeal.

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