TaxTMI 
TaxTMI 
TaxTMI 
2023 (3) TMI 444
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.... 'Customs House Agency Service' (CHA), 'Steamer Agency Services', 'Technical Inspection, Analysis and Certification Services', 'Cargo Handling Services', 'Port Services' and 'Transport of Goods by Road Services' as per the provisions of the Finance Act, 1994 (Act). 3. A case was registered against them by Headquarters Preventive Unit of the Commissioner of Central Excise, Tirunelveli for failure of the assessee to correctly pay service tax on taxable value as per Section 67 of the Finance Act, 1994 resulting in a short-payment of Service Tax and Education Cess totally amounting to Rs.1,40,87,194/- for the periods 2004-05, 2005-06 & 2006-07. It was alleged in the Show Cause Notice, dated 20/10/2009, issued to the appellant that they have no....
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....ceived (other than expenses which were reimbursed). Merely because they had accounted for transactions under various heads in their financial statement it would not justify vivisection of a composite service. He further submitted that they have correctly paid service tax on 15% of the total consideration received on the turnkey projects which is in fact more than the amount payable if the actual agency commission alone was to be taken into consideration for payment of tax. He stated that the Bangalore Bench of the Hon'ble Tribunal in the appellant's own case i.e. Aspinwall & Co. Ltd. Vs. CCE, Mangalore reported in 2011 (21) STR 257 (Tri. Bang.) and again in Aspinwall & Co. Ltd. Vs. CCE, Cochin reported in 2017 (5) TMI 149 (CESTAT Bang.) hel....
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....o by them with their clients on a turnkey basis. Hence they had not classified the services rendered by them properly under the Act. As per Rule 5 of the Service Tax (Determination of Value Rules) 2006, the reimbursement, other than statutory levies, received by the appellants is includible in the assessable value. For this suppression of value and improper classification of services they were correctly ordered to pay duty and interest with suitable penalties in the impugned order. He has further reiterated the points made in the impugned order. 6. We find that the major issues for consideration are: - (i) Whether the services provided by ASPIN has to be separately classified under 'Cargo Handling Service', 'Clearing and Forwarding Agenc....
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.... a client has agent from the client for services rendered in any manner in relation to import or export of goods. The service tax is chargeable @ 5% on the value of the taxable service." The above clarification with reference to the CHA service covers a gamut of service activity which could when rendered individually be covered under other specific service categories. However, when the whole range of activity is performed by a CHA in relation to the entry or departure of conveyance or the import or export of goods, it will be covered under CHA Service and Service Tax is to be computed only on the gross service charges, by whatever head / nomenclature billed by the CHA to his client. This clarification is squarely applicable in the case of ....
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....d Mangalore establishments by the coordinate Bench of the CESTAT at Bangalore. Paragraphs 15 and 16 of the Tribunal's judgement in Aspinwall & Co. Ltd. Vs. CCE, Cochin reported in 2017 (4) GSTL 48 (Tri. Bang.), which discusses the issue lucidly, is reproduced below. "15. Service tax was imposed on "Custom House Agent Services" w.e.f. 15-6-1997. At the time of introduction of the service tax, Circular F. No. B43/1/97-TRU, dated 6-6-1997 was issued, in terms of which the "Custom House Agents", who received lumpsum amounts including the Agency Commission, will have the option of paying service tax by considering 15% of such lumpsum amount as service charges. The appellant has been paying service tax on such "Turnkey contracts" on 15% of the ....