2014 (2) TMI 862

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.... has submitted that the applicants are engaged in providing the services under the category of clearing and forwarding agent service/ Business Auxiliary service/ Customs House Agent service etc. The total demand comprises of Rs.16.74 Crores on account of reimbursable expenses received from their receivers while proving services of clearing and forwarding agent service/Customs House Agent service and Rs. 1.46 crores received from various Airlines in providing Business Auxiliary Service. The Ld. Chartered Accountant further submitted that the Ld. Commissioner disallowed the reimbursable expenditure incurred during the course of discharging their service as clearing and forwarding agent /customs house agent service during the relevant period u....

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.... 4. The Ld. A.R. for the Revenue, on the other hand, submitted that Hon'ble Delhi High Court in the Intercontinental's case, have struck down Rule 5 (1) of Service Tax Valuation Rules, 2006, whereas, the present demand of Rs.16.74 Crores has been confirmed by the adjudicating authority in taking recourse to Rule 5 (2) of the said Service Tax Valuation Rules, 2006, hence, the said judgment is not applicable to the facts of the present case. Regarding the amount received as incentive for booking cargo space for airlines, the Ld. A.R. has submitted that the adjudicating authority after carefully analyzing the facts of the present case observed that the activities carried out by the applicant are in the nature of promotion and marketing of s....