2016 (4) TMI 982

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.... set aside the penalties while the assessee is aggrieved by the order on the ground that the first appellate authority has not considered that reimbursable expenses cannot be included in the gross value for discharge of service tax. 3. The appellant assessee is a clearing and forwarding agent for Ms. M/s. Amway India Enterprises handling operations of regional mother warehouse for which, as per contract, the appellant assessee receives fix monthly remuneration, variable charges, kit, assembly charges, stickering charges, home delivery charges and local stock transfer charges. There is no dispute that the appellant had discharged the service tax liability on the servie board rendered by them, but the allegation is that appellant has been di....

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....he Finance Act, 1994. The assessee further contended that the inclusion of such reimbursed expenditure was bad in law. 5. In accepting the case of the respondent/assessee, the Customs, Excise and Service Tax Appellate Tribunal referred to the decision rendered by the Tribunal in the case of Sri Sastha Agencies Pvt Ltd., Vs. Asst. Commissioner reported in 2007 (6) STR 185 (Tri.Bang), holding that no element other than remuneration received by a Clearing & Forwarding agent from their principal was to be included in the taxable value of the service. Thus, the Tribunal allowed the appeal. 6. Aggrieved by this, the present appeal has been preferred by the Revenue. Learned Standing counsel appearing for the Revenue submitted that as per the p....