Tribunal sets aside demand on reimbursable expenses citing Supreme Court decision. Appeal allowed with relief.

The Tribunal held that the demand on reimbursable expenses collected by the appellant was not sustainable based on the Supreme Court decision in the case of UOI Vs Intercontinental Consultants and Technocrats Pvt. Ltd. The demand was set aside, and the appeal was allowed with consequential relief, as the period involved in the appeal was prior to 2015.

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Issues involved: Whether demand on reimbursable expenses collected by the appellant is sustainable.

The appellant, engaged in "Freight Forwarding of imported and exported goods," was found to have short paid service tax on various services. The original authority confirmed the demands, which were later set aside by the Commissioner (Appeals) except for demand on reimbursable expenses. The appellant appealed against this decision.

During the appeal, the appellant's consultant argued that the demand was raised on charges collected from clients, such as Bill of Lading expenses, Terminal handling charges, Liner DO fees, and Container halting charges, which were expenses reimbursed to the appellant. Referring to a Supreme Court case, the consultant requested that the appeal be allowed.

The Department, represented by the Assistant Commissioner, supported the findings in the impugned order.

The Tribunal found that the demand on reimbursable expenses collected by the appellant was not sustainable based on the Supreme Court decision in the case of UOI Vs Intercontinental Consultants and Technocrats Pvt. Ltd. The period involved in the appeal was prior to 2015. Therefore, the demand was set aside, and the appeal was allowed with consequential relief.

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