https://www.taxtmi.com/caselaws?id=646 Service tax was not chargeable on the full reimbursement paid to a consignment agent where the agreement showed mixed marketing and agency functions, with clearing and forwarding work only incidental. The Tribunal held that tax attaches only to the taxable service actually rendered, and the entire amount cannot be brought to tax under the clearing and forwarding head merely because that activity formed one component of the arrangement. As the assessee was not providing clearing and forwarding service in substance, the demand based on the full reimbursement was unsustainable. Once the tax demand failed, the penalty also had no independent basis and could not survive. en-us Fri, 16 Jun 2006 00:00:00 +0530 Thu, 27 Feb 2014 18:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=646 Service tax was not chargeable on the full reimbursement paid to a consignment agent where the agreement showed mixed marketing and agency functions, with clearing and forwarding work only incidental. The Tribunal held that tax attaches only to the taxable service actually rendered, and the entire amount cannot be brought to tax under the clearing and forwarding head merely because that activity formed one component of the arrangement. As the assessee was not providing clearing and forwarding service in substance, the demand based on the full reimbursement was unsustainable. Once the tax demand failed, the penalty also had no independent basis and could not survive. Case-Laws Service Tax Fri, 16 Jun 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=646