TaxTMI 
TaxTMI 
2018 (12) TMI 1778
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....ing such service. The respondent paid Service Tax of Rs. 2,05,11,753/- after deducting the values realized towards Statutory Expanses such as Cess, Customs Duties, Port Duties, etc and also values relized towards general charges, labour charges, transportation, miscellaneous charges, sea and air freight charges, drawback claim, go-down rent, service charges etc. (collectively the other charges), incurred by them on such reimbursement. They were also the recipient of Good Transport Agency Service. Show Cause Notice dated 16/10/2007 was issued alleging short payment of Service Tax during the period from 2002-03 to 2005-06 under the category of "CHA Service", short payment of Service Tax @ 8% instead of 10.2% for the period from 10/09/2004 ....
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....rcular No F. No.B43/1/97-TRU dated 06.06.1997 in relation to the service rendered by a CHA and the computation of service tax thereof. (iii) The amounts reimbursed by the clients of the respondent against various other expenses are not actual amounts of the expenses incurred by the respondent. The expenses incurred are debited to the Profit & Loss amount and therefore should be treated as the assessee's expenses for running his business and the amount realized on profit basis should be treated as value received for providing taxable services. 2. The Respondent assessee has filed Cross Objection being CO No.53/2009 against this appeal. 3. The Ld. DR appearing on behalf of the appellant Department reiterates the grounds of appe....
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....: Charge of Service Tax There shall be levied a tax at the rate of twelve percent of the value of taxable services referred to in sub-clauses (a), (d), (e), (f), (g), (h), (i),..................(zzzzv) and (zzzzw) of clause (105) of section 65 and collected in such manner as may be prescribed. 6.3 Section 67: Valuation of taxable services for charging service tax For the purposes of this Chapter, the value of any taxable service shall be the gross amount charged by the service provider for such service provided or to be provided by him. Explanation 1.-For the removal of doubts, it is hereby declared that the value of a taxable service, as the case may be, includes,- a) The aggregate of comm....
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....97 "2.4 It is clarified that in relation to Custom House Agent, the service tax is to be computed only on the gross service charges, by whatever head/nomenclature, billed by the Custom House Agent to the client. It is informed that the practice obtaining is to show the charges for services as "agency commission", "charges", "agency and attendance charges", "agency charges" and some similar descriptions. The service tax will be computed only with reference to such charges. In other words, payments made by CHA on behalf of the client, such as statutory levies (cess, Customs duties, port dues, etc.) and various other reimbursable expenses incurred are not to be included for computing the service tax." 6.5 Meaning of "consideration": The ....
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.... claimed as reimbursement on equalized basis, which results in excess or shortfall in recovery of expenses incurred. The Adjudicating authority confirmed the demand on the surplus balance appearing in the "Expense Reimbursement Biling" account. Impugned order not discussing reasons for coverage of expense reimbursement, billing, break up of bull fees, sea freight, airline commission, freight rebate and unallocated income under Customs house agent service - Order not speaking and bad in law - Section 33A of Central Excise Act, 1944 as applicable to Service Tax vide Section 83 of Finance Act, 1994. The Income arising from reimbursable expenses when charged on a notional or equalized basis is not chargeable to servic....
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....hennai Tribunal Order dated 18.09.17, reported in 2017 (9) TMI 1264. Matter decided in favour of the assessee [Para 5.5 of the Order refers]. Apart from that in other various cases this judgment has been referred. (iii) International Shippers & Traders Pvt. Ltd. vs. Customs and Service Tax, Visakhapatnam-I [ 2015 (11) TMI 906- CESTAT, Bangalore At the time of introduction of levy of service tax on services rendered by customs house agent, on the basis of Circular No. F. No. B43/1/97-TRU, dated 06.06.1997 Trade Note No.39/97 dated 11.6.1997 was issued by Delhi Commissionerate. It explained the role of CHA and also had laid down the procedures to be followed. In another Circular No.119/13/2009-ST dated 21.12.2009, C....