2023 (10) TMI 742

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....y the Service Tax under this service. The Department issued Show Cause Notice on the ground that they were providing C & F Agency Service and they were not paying the Service Tax on godown Charges, Security charges, Guard charges, Electricity Charges etc. After due process, the demands were confirmed along with interest and penalty. Being aggrieved, the Appellant is before the Tribunal. 2. The Learned Consultant submits that they are only "C&F Vendors" to ITC and hence are not providing the service of "clearing and forwarding" on behalf of ITC. Further he submits that in case of reimbursement, they are not required to pay the Service Tax and rely on the case law of Sri Bhagavathy Traders Vs Commissioner of Central Excise, Cochin-2011 (24....

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....ing the activity of Clearing and Forwarding service. Therefore, we reject the Appellant‟s submission that they are only carrying on the „C & F Vendor‟ services. 6. On going through Annexure 2 of the Agreement, it is seen that the amounts mentioned under the headings Rent, Security and Guards etc. are rounded figures and reflect that these are expenses which are being incurred by the Appellant. It is not mentioned anywhere that the expenses are being incurred on behalf of the principal to qualify as reimbursable expenses. 7. The Larger Bench in the case of Sri Bhagavathy Traders Vs Commissioner of Central Excise, cited supra has held as under- 6.2 Similar is the situation in the transaction between a service ....