2017 (8) TMI 1232

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....s Shri. K.M. D'souza, Asstt, Commissioner(A.R.) for the Respondent ORDER Per: Ramesh Nair The appellant is a Clearing and Forwarding Agent, registered under Clearing and Forwarding Agency Service. They are discharging Service Tax on the commission, however they are collecting various expenses such as rent, postage and stationary, telephone charges etc, under claim that these expens....

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....ing aggrieved by the Order-in-Original filed an appeal before the Commissioner (Appeals), who by upholding the Order-in-original dated 24-9-2012 rejected the appeal filed by the appellant, therefore appellant is before us. 2. Rajiv Luthia, Ld. C.A. appearing on behalf of the appellant submits that appellant is working purely as a agent and getting the amount spent for or on behalf of principals....

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....at the reimbursement is not chargeable to service tax. 3. On the other hand, Shri. K.M. D'souza, Ld. Asstt, Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both sides and perused the record. 5. We find that appellant is providing service of Clearing and Forwarding Agency for wh....

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....ncy, therefore in our considered view so called reimbursement escaped from payment of service tax is clearly includible in the gross value of services of Clearing and Forwarding Agency, Accordingly, we hold that service tax is chargeable on such reimbursement. As regard the penalties under Section 76, 77 and 78, we find that reimbursement, particularly in case of Clearing and Forwarding Agency ser....