2016 (9) TMI 98

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....ent and were discharging their service tax liability on the commission received by them. 2. However, Revenue entertained the view that the reimbursable expenses on account of godown rent, loading, unloading and other factors are required to be added in the assessable value of the services and the tax is required to be computed accordingly. 3. In view of the above, the appellants were issued a show cause notice dated 15.01.2007 proposing to confirm the demand of service tax for the period 2001-02 to 2005-06 by invoking the longer period of limitation. 4. The said show cause notice culminated into an order passed by the original adjudicating authority confirming the demand to the extent of Rs. 4,26,109/- along with imposition of pena....

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.... c) The C&F agents shall, if requested by the Company, provide facilities for air-conditioning of the cabins/office and provide furniture / office equipments / cabins, fire extinguishers, gensets etc at their costs. All such expenditure would be subject to prior approval of the Company in writing. In the event that any equipment / furniture is to be replaced for any reasonable cause, the same can be carried out by the C&F agents subject to prior approval of the Company in writing. d) The maintenance / service charges including all AMC s for such equipments as stated above shall be borne by the C&F Agents. e) The C&F Agents shall be entitled to monthly reimbursement at actual of the local cartage etc. loading / unl....

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....on is viewed and examined in the light of the above decision of the Larger Bench, we note that the service recipient decided and agreed to pay all the expenses for running the C&F agency. In fact we note that Hon'ble Madras High Court in the case of Commissioner of S.T. Chennai Vs. Sangamitra Services Agency-2014 (33) STR 137 (Mad), has held if the receipt is for reimbursing the expenditure incurred for the purpose of providing clearing and forwarding agent services, the same will not form part of the value of the services. The Hon'ble High court of Delhi in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. Vs. UOI-2013 (29) STR 9 (Del) has also examined the said issue and has held in favour of the assessee. Tribunal in the c....