TaxTMI 
TaxTMI 
2017 (11) TMI 1574
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....ears 2002-03 to 2005-06 and collected unloading, loading and crane charges, which attract service tax under the Head Port Services and Cargo Handling Services, but not paid service tax on the same; (ii) They collected certain fixed amounts from their clients towards the services rendered by them as CHA in the case of importation, which did not appear to be towards reimbursable expenses and in the absence of supporting documentary evidences appear to be includible in the taxable value for the purposes of calculating service tax on CHA Services; (iii) They raised invoices charging amounts as "all inclusive" towards Handling Charges, Stuffing Charges, PSA Sical Charges, Transportation Charges, Sundries and the Service Charges at fi....
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....pellant for various services; (d) Confirmed demand of interest on the above; (e) Ordered appropriation of Rs. 4,97,480/- already paid; and (f) Imposed penalties under section 76 and 78 of the Finance Act. Being aggrieved, the appellant is now before the Tribunal. 3. On behalf of appellant, the learned counsel Shri Manoj submitted that appellant is confining the contest in this appeal only on the demand raised in regard to CHA Services and Business Auxiliary Services. The details of demand under dispute in this appeal are tabulated by the counsel as below:- Sl. No. Category of Service Demand as per DRI Payment Made Balance Payable Not disputed Disputed demand....
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....ith regard to Sl.No.1 CHA Services, he submitted that they had incurred expenses for obtaining endorsement in A.R-4, DEEC books, Customs examination. That these being actual expenses, which are reimbursed, cannot be included in the taxable value of services. He relied upon the judgment in the case of Union of India Vs M/s, Intercontinental Consultants & Technocrats Pvt Ltd. reported in 2014 (35) S.T.R.J99 (S.C.) and in the case of Commissioner of Service Tax, Chennai Vs M/s. Sangamitra Services Agency reported in 2014 (33) S.T.R.137 (Mad). It was also argued by him, that any amount collected over and above such reimbursable expenses would not be taxable under the category of CHA Services. With regard to the demand under Business Auxiliary S....
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....ervice tax liability in respect of all other demand except Sl.No.1 & 8 was countered by the learned Authorised Representative stating that whatever amount was paid by the appellant has been taken note of by the Commissioner. 6. Heard both sides and perused the records. 7. The learned counsel for appellant has limited the contest in the appeal to SI.No.1 & 8 of the table at para 3 above. The demand in SI.No.1 under the category of CHA Services is on the charges collected under the heads A.R-4 expenses, DBK Charges, DEEC Endorsement Charges etc. Major part of such charges are undisputedly reimbursable expenses. The issue whether reimbursable expenses are includible in taxable value or not is settled in the cases ....
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....is seen that there is a Notification No. 13/2003, dated 20.06.2003, which gives exemption under Business Auxiliary Services, for services rendered as Commission Agent. Moreover, Board's Circular, dated 25.04.2003 clarifies that the secondary service providers are not taxable. In fact, the appellants are secondary service providers for the shipping lines, so they would not be covered in view of the Board's Circular. Therefore, we are of the view that the Brokerage Commission of 2% paid for booking of export cargo cannot be taxed under the category of Business Auxiliary Services." 9. Following the above decisions, we hold that the demand under Sl.No.8 [Business Auxiliary Services) is unsustainable and we set aside the s....