TaxTMI 
TaxTMI 
2018 (8) TMI 178
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....r reply dated 28.08.2006. in response to summons received by DGCEI. The demand was confirmed by the original adjudicating authority and first appellant authority. Aggrieved by the said order the appellant before the Tribunal. He argued that the issue involved is with reference to their contract with M/s TaTa Chemicals Ltd wherein they were paying any service Tax in the capacity of C&F agent. They were also recovering the certain charges from M/s TATA Chemicals Ltd as reimbursement. This Show Cause Notice invoking extended period of limitation has been issued for the period October 2002 to November 2006. Ld. Counsel pointed out that another Show Cause Notice was issued to them on 22.11.2006 on the issue regarding the packaging activity under....
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....ice connected with clearing and forwarding operation is involved. They also informed that any amount charged for provisions of c&f service only could be included in value of taxable service under the category of C&f service. (iii) Regarding other fixed expenses they informed that these are charged for the expenses incurred by them towards fixed capital reimbursement, VFFS machines, spares, interest on fixed capital investment and operator and helper salary, and are no related to remuneration or commission paid to clearing and forwarding agent by the client. (iv) The loading charges for outward movement is for recovery of expenses incurred by them for loading charges. The recovery of expenses of loading for outward movement is not a remu....
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.... to new agent together with the ownership of the machine. He also stated that they had to complete the loan in five years, the instalments of the machine are paid by M/s TATA Chemicals to HSBC bank after deducting the same from their bill raised to them. These charges of Rs. 10431/- towards fix interest and Rs. 37255/- towards fixed capital reimbursement will be claimed by them from M/s Tata chemicals for eight years, the period which is the life of the machine as determined by M/s Tata in the agreement. He stated that this is purely reimbursement of facilitation of financing. 5.1 Regarding the salary of the operator he stated that the salary of the operator was fixed by M/s TATA Chemicals at Rs. 34,000/- The operator is operating the VFFS....
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....dated 14-July-1997 and on the Circular No: 334/1/2008-TRU dated 29-Feb-2008 and Circular: 186/2015-S.T.dated 05-Oct-2015. Ld. Counsel relied on the decision of Hon'ble Apex Court in the case of Gannon Dunkerley & Co.(P) 1958 (4) TMI 42 Supreme Court of India. 7. Ld. Counsel argued that it is not open the Revenue to divide a single service of C&F agent into different components and demand Service Tax. He argued that the dominant purpose of the contract needs to be appreciated and service should be classified under the said head. He relied on the decision of House of Lord in the case card protection plan Limited. 8. Ld. AR relies on the impugned order. 9. We have gone through the rival submission. We find that the entire defence of the app....
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....n Hon'ble Apex Court in case of Gannon Dunkerley (Supra). In the said decision while holding that the workers contract cannot be vivisected for the purpose of Tax. Hon'ble Apex Court clarified as follows. "To avoid misconception, it must be stated that the above conclusion has reference to works contracts, which are entire and indivisible, as the contracts of the respondents have been held by the learned Judges of the Court below to be. The several forms which such kinds of contracts can assume are set out in Hudson on Building Contracts, at p. 165. It is possible that the parties might enter into distinct and separate contracts, one for the transfer of materials for money consideration, and the other for payment of remuneration for servi....
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.... essential features or the dominant element of the transaction. A supply which comprises a single supply from an economic point of view should not be artificially split. The method of charging or invoicing does not in itself determine whether the service provided is a single service or multiple services. Single price normally suggests a single supply though not decisive. The real nature and substance of the transaction and not merely the form of the transaction should be the guiding factor for deciding the classification." 11. Ld. Counsel has argued that the method of charging or invoicing does not in itself determined whether the Service Tax provided is a single Services or multiple services. In the instance case the contract is not a com....