2023 (10) TMI 499

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....Advocate for the Appellant Shri B. Sangameshwar Rao, AR for the Respondent ORDER [ Order per : ANIL CHOUDHARY ] Heard the parties. The issue involved in this Appeal is whether the Appellant, who was providing clearing and forwarding agent services and are registered with the Department, is liable to pay Service Tax on certain expenses which have been reimbursed by their principal during the....

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....eimbursements totalling Rs.30,03,539/-. Accordingly, SCN dated 23.02.2011 was issued proposing to demand Service Tax of Rs.3,09,365/- with interest and further penalty was proposed under Sec 76 of the Act. 4. The SCN was adjudicated on contest and the proposed demand was confirmed along with penalty under Sec 76 of the Act. Being aggrieved, the Appellant preferred Appeal before the Commissioner (....

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....f consideration for any services provided by the appellant. These are the expenses incurred by the appellant and have been reimbursed by the principal pursuant to the agreement. Such reimbursable expenses cannot form part of the assessable value during the relevant period because service tax can only be levied on the gross amount charged for rendering services as has been held by the Hon'ble Apex ....