2015 (11) TMI 1104

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....ngh : Appeal has been filed against Order-in-Appeal No.162/BPL/2009, dated 25.03.2009, which upheld the Order-in-Original dated 10.10.2008 in terms of which service demand of Rs. 1,36,728/- was confirmed along with interest [and equal amount of penalty was also imposed (although Section 78 of the Finance Act, 1994 was not mentioned in the order portion)] on the ground that the amount received o....

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.... reimbursed on the actual basis. 2. Ld. Departmental Representative on the other hand stated that warehousing and other reimbursables were in connection with providing C&F agent service and therefore were includible in the assessable value as the service tax is chargeable on the gross amount charged for the service rendered as per Section 67 of Finance Act, 1994. He cited CESTAT judgment in the....

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.... drug license for it etc. which were not related to the C&F agent service rendered by them. 3. We have considered the contentions of both sides. We find that the issue of includibility of warehousing and other reimbursables in the value of C&F agent service has been a subject matter of several judicial pronouncements. In the case of K.D. Sales Corporation Vs. CCE, Belgaum  2007 (6) STR 418....

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....R 137 (Mad.) and held that reimbursable expenses received by the assessee need not be added to the taxable value relating to clearing and forwarding agents service and that the receipt is for reimbursing expenditure incurred for the purpose and the mere act of reimbursement per se would not justify the contention of Revenue that the same was having the character of the remuneration or commission f....