2011 (1) TMI 241

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.... was issued to them proposing to confirmed the demand of Rs. 36,20,863/- on the ground that the service tax is to be levied on the entire gross value charged by the appellants from their customers without giving deduction on account of re-imbursable expenses incurred by the CHA. However, as during adjudication, the appellant could produce evidence showing the actual expenses undertake by them on behalf of their client, the adjudicating authority, granted the relief to that extent. As the documentary evidence for the balance years could not be produced by the appellants, having been lost by them, the demand to the tune of Rs. 24,18,925/- was confirmed alongwith confirmation of interest and imposition of penalty of Rs. 10 lakhs under Section ....

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....m and as the charges reflected in the invoice," Agency Commission, Charges, Agency and Attendance Charges, Agency Charges and some similar other descriptions." It stands clarified in the Board Circular the service tax shall be computed only with reference to such charges. And the payment could not statutory levies made by the CHA on behalf of their claim and taxes at all reimbursable expenses incurred by them are not to be included for computing the service tax. 5. Learned Advocate submits that the Revenue agrees on the above legal issue and in fact extended the benefit for one year in respect of they could produce the documents. However, benefit has not been extended only in respect of that period for which the documents could not ....

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....the appellants have not been able to produce the supporting documentary evidences in respect of the various reimbursable expenses incurred by the appellants, in which case the authorities below were justified in rejecting the claim. As regards the alternative course of action suggested by the Board Circular relied upon by the appellants he submits that since the invoices were being raised showing the break up and not for a lumpsum amount, the second... amount would not be available. 8. After appreciating the submissions made by both sides, we reproduce paras 2.4 and 2.5 from the Board Circular No. B/43/1/97- TRU dated 6-6-1997 :- "It is clarified that in relation to Custom House Agent, the service tax is to be computed only on th....