Taxable value excludes reimbursed freight and incidental charges for consignment sales agents, following prior Tribunal precedent.

Freight, loading and unloading charges, and other reimbursed expenses received by consignment sales agents were treated as not includible in the taxable value of the service. The Tribunal followed its earlier decision, in line with the Chennai Bench, that such reimbursements and incidental expenses are not to be added to the value of the taxable service. On that basis, the departmental view was found unsustainable and the inclusion of those expenses in the taxable base was rejected.

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Issues: Whether freight, loading and unloading charges, and other reimbursed expenses received by consignment sales agents are includible in the taxable value of the service.

Analysis: The Tribunal treated the question as settled by its earlier decision following the Chennai Bench, which had held that such reimbursements and incidental expenses are not to be added to the value of the taxable service. On that basis, the issue was regarded as no longer open and the departmental view was found unsustainable.

Conclusion: The inclusion of the reimbursed expenses in the taxable value was held to be unsustainable and the issue was decided in favour of the assessee.

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