2017 (4) TMI 39

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nto an agreement with M/s. Parle Products Ltd. to act as their C & F Agent. The dispute in the present case is relating to valuation of the taxable service. The appellants contented that they are liable to pay service tax only on agency commission and remuneration received for performing C& F services. It was contended that M/s. Parle Products Ltd. were reimbursing various expenditure like ground rent, telephone, postal charges, electricity etc. on actual basis in terms of the agreement. Such reimbursable expenditures are not be included in the taxable value. 2. On the other hand, the Revenue held the view that gross value for the purpose of service tax in terms of Section 67 of the Act read with Rule 6 (8) of the Service Tax Valuation R....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h factual position, we note that the settled legal position is not supporting the findings of the impugned order. The Hon'ble Madras High Court in Commissioner of Service Tax, Chennai vs. Sangamitra services Agency - 2014 (33) STR 137 (Mad.) held as below:- 7. We do not agree with the said contention. In the absence of any material to show the understanding between the Principal and the Client that the Commission payable by the principal was all inclusive, it is difficult to hold that the gross amount of remuneration/commission would nevertheless include expenditure incurred by the assessee providing the services; that all incidental charges for running of the business would also form part of the remuneration or Commission (by what....