2014 (7) TMI 326

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....providing the C & F Agents Services to M/s. Gujarat Ambuja Cement (w.e.f. July, 2002) , M/s. Prism Cements (from 1.4.2002 to May, 2004), M/s. Manikgarh Cement Ltd. (w.e.f. 17.07.2002) and M/s. J.P. Cement (Upto March, 2003). For providing C& F Agent services, the appellant have entered into an agreement with each of the Cement companies. The period of dispute in this case is from October, 2001 to September, 2006. The appellant in terms of their agreements with their clients, were required to maintain godowns at the cost of the clients for the storage of the goods and were required to maintain proper records. Besides this, they were fully responsible for unloading the cement at railway station/godown and its transportation to various dealers....

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....ct only as pure agents, that the bills of the transporters, labour contractors and the godown owners are in the name of the principals or not in the name of the appellant, that in view of this, these charges cannot be treated as the amount received for the services provided , that though Rule 5 (1) of the Service Tax Valuation Rules, which came into force w.e.f. 19.04.2006 provides that where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value of services for the purpose of charging service tax on the said service except for the cases where....

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....gavathy Traders Vs. CCE, Cochin reported in 2011 (24) STR 290 (TR-LB), wherein the Tribunal has held that the expenses incurred by the C & F Agent which were reimbursed to them by their principals would be includible in the in the assessable value unless their clients were under legal obligation to reimburse those expenses in terms of some agreement. He pleaded that since there is no such obligation in this case, the expenses, in question, have to be included in the assessable value. 5. We have considered the submissions from both the sides and perused the records. 6. The point of dispute is as to whether the expenses for arranging transporting from the godown to the premises of the dealers/stockists; the expenses for arranging the lo....