2018 (3) TMI 1240

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....tion is whether appellant, being a registered service provider under the category of Cargo Handling Service, needs to be taxed for an amount received by them under Port service or otherwise. The first appellate authority has held in favour of respondent. 4. We find that Revenue is stating in the grounds of appeal that services rendered within the Port needs to be classified under Port Services. The pleadings in grounds of appeal are not furthering the case of revenue any more; the first appellate authority has recorded that appellants are running Cargo Handling Service within the Port and are registered with the department as such. We find that the first appellate authority was correct in coming to such a conclusion by relying upon the C....

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.... on the value of the taxable service. 2.3 The services rendered by the Custom House Agent are not merely limited to the clearing of the import and export consignment. The CHA also renders the service of loading/unloading of import or export goods from/at the premises of the exporter/importer, the packing, weighment, measurement of the export goods, the transportation of the export goods to the customs station or the import goods from the customs station to the importer s premises carrying out of various statutory and other formalities such as payment of expenses on account of octroi, destuffing /pelletisation, terminal handling, fumigation, drawback/DEEC processing, survey/amendment fees, dock fees, repairing and examination charge....

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....uded for computing the service tax. 2.5 In many cases, the Customs House Agent undertakes turnkey imports and exports where a lump sum amount is charged from the client for undertaking various services. In these cases, the lump sum amount covers not only the agency commission fee but also other expenses and no separate break up is given in respect of these expenses. It has been decided that in such cases, the value of the taxable service shall be 15% of the lumpsum amount charged to the client. The Custom House Agents are required to show the service charges as 15% of such lumpsum amount of the bills and service tax of 5% will be chargeable on the above 15%. It is clear from the above circular that the tax to be paid is as....