2019 (4) TMI 1692

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.... Assessee. Shri C. Mallikarjun Reddy, Superintendent/AR for the Revenue. ORDER Per: P.V. Subba Rao. 1. Both these appeals are against the same impugned order i.e., Order-in-Original No. 25/2011-ST dated 27.12.2011 and hence are being disposed of together. 2. Heard both sides and perused the records. 3. The appellant/assessee herein is Clearing & Forwarding Agent (C & F Agent) for....

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....ellant contested the show cause notice on merits as well as on limitation. On merits, it was their contention before the adjudicating authority that reimbursable expenses do not form part of the gross amounts charged as per Rule 5(1) of Service Tax (determination of value) Rules, 2006. On limitation, it was their contention that the entire arrangement which they had with Marico was known to the de....

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....tion. 5. At the outset, learned counsel for the appellant would submit that the core issue in this is whether reimbursable expenses can form part of the assessable value being the gross amount charged for the service or otherwise. This appeared so in terms of Rule 5(1) of the Service Tax (Determination of value) Rules, 2006. However, this rule itself was struck down by the Hon'ble Supreme Court....

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....t was his submission that if Marico had paid service tax on GTA services, the same could have been availed as CENVAT credit but the service tax needs to be discharged on the entire amount. Therefore, the adjudicating authority has erred in dropping part of the demand. 7. We have considered the arguments on both sides and perused the records. The issue is regarding charging service tax on reimbu....