2023 (12) TMI 126

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....r: S. N. Name of Service Year wise value of service 2008-09 2009-10 2010-11 2011-12 2012-13 1 Conveyance and Mis. Expenditure 1687900 2622940 3167000 2186850 43100 2. Forklift/crane/exam/ delivery /sorting 3355128 0 0 0 0 3 Labor Charges for Examination & for delivery 5475622 12476352 12503097 10686355 933613 4 Lift on/off charges 0 37562 429542 1044458 400318 5 Ground rent/survey charges/ detention /clea....

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.... (ii) International Shippers & Traders Pvt. Limited. - 2016(45) STR 460 (Tri. Bang.) 5. He further argued that the department has invoked Rule 5 for inclusion of reimbursable expenses in the value of CHA service charges. The said Rule was held ultra-vires by the Supreme Court in the case of Intercontinental Consultants & Technocrats Pvt. Limited (supra). 6. He also submits that for demand of service tax in the present case, in the show cause notices, extended period was invoked. The issue that whether the reimbursable expenses are liable to be included in the gross value of CHA service was the matter of interpretation of law and there were many litigation. Therefore, the appellant had bonafide belief that they are liable to pay....

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....ble value received by the Service provider from the service recipient on any count. 9. We find that as per the provisions of Rule 5 of the Service Tax (Determination of Value) Rules, 2006, the reimbursable expenses also need to be included in the value of taxable services rendered. However, this rule has been held to be ultra-vires to section 67 by Hon'ble Supreme Court in the case of Intercontinental Consultants & Technocrats Pvt. Limited as reported in 2018 (10) G.S.T.L. 401 (S.C.). Hence, the demand of Service Tax on this count is clearly not sustainable. On the very issue in hand, the Board in the circular supra has also clarified the matter in favour of the assessee. The relevant para of the circular is reproduced below: ....

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....mer; and (ii) make payments to other service providers on his behalf; (c) The CHA does not use the activities/services for his own benefit or for the benefit of his other customers; (d) The CHA recovers the reimbursements on 'actual' basis i.e. without any mark-up or margin. In case of CHA includes any mark-up or profit margin on any service, then the entire charge (and not the mark-up alone) for that particular activity/service shall be included in the taxable value; (e) CHA should provide evidence to prove nexus between the other (than CHA) services provided and the reimbursable amounts. It is not necessary such evidence should bear the name or address of the customer. Any other evidence like BE No./Container No....