Clearing and forwarding valuation excludes reimbursable expenses; tax applies only to commission received.

For clearing and forwarding agent services, taxable value is confined to the gross remuneration or commission received and does not extend to separate reimbursable expenses such as loading and unloading, freight, telephone, postage, courier, stationery, computer-related, repacking, travel and internet charges. The governing valuation rule was applied on the basis that only the consideration for the service forms part of the taxable value, and expense items not included in the commission cannot be added. On that principle, the disputed expense components were held not includible, and service tax was payable only on the commission received.

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Issues: Whether handling charges, secondary freight and similar reimbursable expenses were includible in the taxable value of clearing and forwarding agent services.

Analysis: The dispute turned on the valuation of taxable services for clearing and forwarding operations. The governing rule treated the taxable value as the gross amount of remuneration or commission paid to the agent for such services. On that basis, the value could not be enlarged by adding separate expense items such as loading and unloading charges, freight, telephone, postage, courier, stationery, computer-related expenses, repacking, travel and internet charges. The issue had already been settled by earlier decisions relied upon in the proceedings, and the same principle was applied here.

Conclusion: The disputed expense components were not includible in the taxable value, and service tax was payable only on the commission received; the finding was in favour of the assessee.

Ratio Decidendi: For clearing and forwarding agent services, taxable value is confined to the gross remuneration or commission received and does not extend to separate reimbursable expenses not forming part of that commission.

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