2018 (2) TMI 1177

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....clients. The issue in the present case relates to valuation of the services rendered by the appellant for service tax purpose. The appellants are liable to pay service tax on the commission received for their CHA work. However, when they are charging the client on lump sum basis (like Per MT of cargo) they had an option to pay service tax on 15% of such lump sum amount. The dispute in the present case is with reference to the quantification of such lump sum amount. The Revenue has contended that all the amount billed and collected by the appellant from the client should form part of gross amount. Whereas the appellants contended that the gross lump sum amount exclude the expenses incurred by the appellant during the course of their work as ....

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....liability, stipulates that when the Custom House Agent undertakes turnkey imports/exports, where a lump sum amount is charged for undertaking various services, such lump sum amount will include not only agency commission but also other expenses where no separate breakup is given in respect of these expenses; they have to form part of lump sum and thereafter 15% of such lump sum will be charged to service tax. 5. We note that the findings of the original authority is misplaced in analyzing the scope of reimbursable expenses. He held that all amount received by CHA for rendering services are considered reimbursable except for commission. We are not dealing with a generic scope of reimbursable amount. For service tax purpose an amount which....

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....onnection, we also refer to the decision of the Tribunal in Cargolinks Vs. CCEX, Mangalore 2010 (19) S.T.R. 548 (Tri.-Bang.). In the said order the Tribunal examined similar set of facts and concluded that the taxable amount should not include the reimbursable expenses which are shown separately and received on actual basis. 7. During the course of hearing, the learned counsel also submitted that there is another issue involved in the present appeal with reference to a short payment of duties of Rs. 46,144/- (Rupees Forty Six Thousand One Hundred and Forty Four only) under the tax entry Steamer Agent Services. He submitted that they are no disputing the tax liability on merit. Further he submitted that the demand is hit by limitation. Th....