2018 (8) TMI 1682

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....engaged in providing support to international steamer agents. They are covered within the definition of "Steamer Agents Services" for which they have taken registration and are paying service tax. During the course of audit, Revenue found that there was a huge difference between the total receipts and the amounts on which service tax was paid. The differences were mainly found as follows for the period April 2006 to September 2007:- Sl.No. Particulars Amt in Rs. 1 Services provided abroad 2,00,45,536 2 Freight elements 57,05,644 3 Discount 21,90851 4 Transport 57,17,712 5 Others 45,15,884   Total 3,81,75,627 2. Similar differences were noticed by the Revenue for the enti....

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.... to the customer's premises. Such amounts were recovered from the customers and paid to the respective service providers without any mark up. Such amounts were also claimed to be not liable to service tax. 4. The above arguments of the appellant did not find favour with the adjudicating authority. After due process of verification, the entire demand of service tax covered by the three SCNs as above was confirmed totally amounting to Rs. 65,29,558/- for the period October 2003 to September 2007 and Rs. 1,05,67,260/- for the period October 2007 to March 2009. In addition, demand of interest under Section 75 of the Act and various penalties were also imposed under Sections 76, 78 and also under Service Tax Rules, 1994. Aggrieved by the impu....

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....ded to the appellant by the shipping lines, in the payment of freight elements, no service tax can be levied as has been held in the case of the Commissioner of Central Excise Vs. Diamond Shipping Agencies Pvt. Ltd., in Final Order No. 43161/2017 dated 18.12.2017. Finally he submitted that the impugned order may be set aside. 7. The Ld. AR justified the impugned order. He sought to distinguish the case of the decision of the Tribunal in the case of Diamond Shipping. He submitted that the said decision was rendered in the category of CHA services whereas the impugned order deals with steamer agents services. 8. We have heard both sides and perused the records. 9.1 The main thrust of the arguments advanced by the appellant is that mo....

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....gh Court was right in interpreting Sections 66 and 67 to say that in the valuation of taxable service, the value of taxable service shall be the gross amount charged by the service provider „for such service‟ and the valuation of tax service cannot be anything more or less than the consideration paid as quid pro qua for rendering such a service. 25. This position did not change even in the amended Section 67 which was inserted on May 1, 2006. Sub-section (4) of Section 67 empowers the rule making authority to lay down the manner in which value of taxable service is to be determined. However, Section 67(4) is expressly made subject to the provisions of sub-section (1). Mandate of sub-section (1) of Section 67 is manifest, as n....