TaxTMI 
TaxTMI 
2018 (6) TMI 809
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....aring and Forwarding agent' service and is registered with the Department. It appeared to Revenue that the appellant have short paid Service Tax. Information was called from the principal i.e. M/s. Jaypee Bela Plant (unit of Jaiprakash Associates Ltd.) Rewa MP. who in reply informed that since 01/04/2001 under the contract signed with the appellant, they have made gross payment of Rs. 1,01,27,231/- for providing the 'C & F' services on which it appeared that Service Tax of Rs. 9,01,863/- was payable whereas the appellant had paid service tax of Rs. 49,530/- only. Hence, it appeared that the appellant have short paid Service Tax of Rs. 8,52,333/- for the period April, 2002 to September, 2006. 3. This is the second round of litigation before....
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....section 76. 5. Being aggrieved the appellant is before this Tribunal. The learned counsel for the appellant states that service tax is not payable on amounts received by the appellant / service provider which are received as a pure agent as have been held by Hon'ble Delhi High Court in the case of Intercontinental Consultants And Technocrats Private Ltd., which judgment have been confirmed by Hon'ble Supreme Court as reported in 2018 (10) GSTL 401 (SC). In the said judgment, it has been held that Rule 5(1) of Service Tax (Determination of Value) Rules, 2006 is ultra virus section 67 of the Finance Act. It has been further held that the amounts received by the service provider as the pure agent, by way of reimbursement, is not leviable ....
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....ith effect from 16/10/1998 vide Service Tax Amendment Rules 1998 which provides - the value of taxable service in relation to the services provided by a Clearing and Forwarding Agent to a client for rendering services of 'clearing and forwarding' operations in any manner shall be deemed to be the gross amount of remuneration or commission (by whatever name called) paid to such agent by the client engaging such agent. 8. We find that subsequent to passing of the impugned order, the Hon'ble Delhi High Court and Hon'ble Supreme Court have clarified this aspect, and made clear that whatever the service provider received by way of reimbursement as the pure agent, no service tax is payable on the same. 9. In this view of the above posit....