CESTAT allowed the appeal and set aside the impugned order insofar as it confirmed a Service Tax demand of Rs.2,05,90,153/-. The Tribunal found that the appellant acted as a "pure agent" in receiving reimbursements (stevedoring, freight, fender supply, spares, survey, launch hire, etc.) on an actual basis, as certified by the Chartered Accountant, and therefore such third-party disbursements are not includable in the assessable value under Section 67 of the Finance Act, 1994 (prior to 14.05.2015). Because the tax demand was annulled, consequential interest and penalties could not be sustained. The impugned order is therefore set aside and the appeal is allowed.
CESTAT allowed the appeal and set aside the impugned order insofar as it confirmed a Service Tax demand of Rs.2,05,90,153/-. The Tribunal found that the appellant acted as a "pure agent" in receiving reimbursements (stevedoring, freight, fender supply, spares, survey, launch hire, etc.) on an actual basis, as certified by the Chartered Accountant, and therefore such third-party disbursements are not includable in the assessable value under Section 67 of the Finance Act, 1994 (prior to 14.05.2015). Because the tax demand was annulled, consequential interest and penalties could not be sustained. The impugned order is therefore set aside and the appeal is allowed.
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