Taxable value of clearing and forwarding service excludes godown rent, establishment expenses, incentives and related charges.

Godown rent, establishment expenses, incentives, STD calls and similar items were considered for inclusion in the taxable value of clearing and forwarding agent service. The Tribunal followed a similar case and relied on the Trade Notice and Board clarification referred to in the order, holding that these amounts were not required to be added to the service value. The additions to taxable value were therefore unsustainable and the appeal was allowed.

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Issues: Whether godown rent, establishment expenses, incentives, STD calls and similar items were liable to be included in the taxable value of clearing and forwarding agent service.

Analysis: The Tribunal followed the view taken in a similar case and relied on the Trade Notice and Board clarification referred to in the order. It held that these elements were not required to be added to the value of the taxable service.

Conclusion: The additions made to the taxable value were held to be unsustainable and the appeal was allowed.

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