TaxTMI 
TaxTMI 
2015 (11) TMI 906
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....verification of records, proceedings were initiated by way of issue of show-cause notice on 21.4.2006. It was observed in the show cause notice that appellant was providing composite services which included unloading of goods from ship, transportation of goods and hiring of barges as well as warehousing, standardization and despatch of goods. It was also observed that appellant company was rendering clearing and forwarding services, steamer agent service, port service and cargo handling service but had taken out registration only for CHA services. On the basis of income in balance sheet, the service tax liability was calculated and notice was issued. After the adjudication process, it has been held that the services provided by the appellan....
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.... payment of actual expenses and a specific percentage to the appellant as commission. He submitted that there is a distinction between the functions of CHA and C & F agent. The CHA offers services to clear the imported goods from the customs station whereas C & F Agent offers services to clear the goods from the manufacturers/traders premises. He also submits that he relies on the decision in the case of Intercontinental Consultants & Technocrafts Pvt. Ltd. Vs. UOI [2013(29) STR 9 (Del.)] to submit that reimbursable expenses cannot be included for arriving at the value of the service. He also relies upon several other decisions to submit that the services rendered by him are only that of CHA and not C & F Agent service at all. 3. Learned A....
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.... from /at the premises of the exporter / importer, the packing, weighment, measurement of the export goods, the transportation of the export goods to the customs station or the import goods from the customs station to the importers premises, carrying out of various statutory and other formalities such as payment of expenses on account of octroi, destuffing/pelletisation, terminal handling, fumigation, drawback/ DEEC processing, survey / amendment fees, dock fees, repairing and examination charges, landing and container charges, statutory labour charges, testing fees, drug control formalities, sorting / marking / stamping / sealing on behalf of the exporter / importer. The Custom House Agent also incurs various other expenses such as crane ....
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.... lump sum amount covers not only the "agency commission" fee but also other expenses and no separate break-up is given in respect of these expenses. It has been decided that in such cases, the value of the taxable service shall be 15% of the lumpsum amount charged to the client. The Custom House Agents are required to show the service charges as 15% of such lumpsum amount of the bills and Service Tax of 5% will be chargeable on the above 15%." It is the claim of the appellant that they have paid service tax on this basis. Further, in Circular No.119/13/2009-ST dated 21.12.2009, CBEC had clarified the position. In fact the Trade Note is based on the circulars. In paragraph 3 of the said Circular, it was observed and reported that Board had ....
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....ties and providing separate agency commission was paid to the appellants. In any case, there is no finding that the amount recovered over and above the commission was more than the actual expenses or actuals were not in the nature of reimbursement. It was also submitted that the transportation from the godown to various places was under a separate agreement and not part of the agreement on the basis of which the activities within the port were undertaken. The only ground the Commissioner has refused to exclude the reimbursable expenditure is that it got merged in the consolidated pre-agreed rate as per the agreement. We find that the Board circular issued and referred to above clearly covered the case of the appellant. 4.4 Moreover, the li....