2015 (10) TMI 1735

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....ellant assessee has contested the confirmation of demand of Service Tax along with interest thereof and imposition of penalties under Sections 77 & 78 of the Finance Act, 1994, while Revenue is aggrieved by the impugned order on the ground that the adjudicating authority has wrongly failed to impose penalty under Section 76 of the Finance Act, 1994. 3. The relevant facts that arise for consideration are that the appellant herein are engaged in providing services of Share Transfer Agency and Registrar to an Issue to their clients. They were registered with the jurisdictional Service Tax authority w.e.f. 24.9.2003 under the category of Business Auxiliary Services from 1.5.2006 on introduction of specific category of services i.e. Share Tra....

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....expenses incurred for postages and reimbursement of other expenses are not to be included in the value for discharge of Service Tax liability. Alternatively, it is his submission that postage which is paid by the appellant is duty and cannot be a part of the taxable value. It is also his further submission that reimbursement of expenses which is sought to be included in the gross value is again a non-starter, as this provision has been struck down by the Hon'ble High Court of Delhi in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. 2013 (29) STR 9 (Del). 5. The learned AR, on the other hand, reiterates the findings of the adjudicating authority and submits that the expenses incurred for postage and other expenses are....

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....t is also undisputed that the amounts which have not been included by the appellant for discharge of Service Tax liability are actual expenses incurred by him. 6.4 We find that the learned C.A. was correct in stating that the issue is now squarely covered by the judgment of this Tribunal in the case of Link Intime Pvt. Ltd. (supra). We reproduce the relevant paragraphs from the said judgment: 2. The learned Chartered Accountant appearing for the appellant submits that the appellant is a Share Transfer Agent (STA in short) and Registrar to an Issue (RTI in short). As a RTI, it acts as an agent of a company in processing application for shares, dispatching allotment letters, refund orders, certificates and other related documents ....

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....ue under the Securities and Exchange Board of India (Registrar to an Issue and Share Transfer Agents) Rules, 1993 and the connected regulations. The said service came under the tax net for the first time on 01/05/2006. Therefore, the question of demanding any service tax on reimbursement of expenditure would not arise at all prior to 01/05/2006, even though the appellant might have paid service tax wrongly under the category of Business Auxiliary Service. 4.2. As regards the demand towards service tax on reimbursement of postage and other stationary expenditure, it is not in dispute that the said expenses have been reimbursed on actual basis. Further under Section 2(f) of The Indian Post Office Act, 1898, the expression postage m....