TaxTMI 
TaxTMI 
2023 (12) TMI 126
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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 /cleaning & washing/ seal of charges/drop charges 503895 0 0 0 0 Total 11022545 15136854 16099639 13917663 1377031 The case of the department is that all these expenses incurred during the course of providing CHA service, therefore the same is includible in the gross value of CH....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 service tax only on the value of CHA service and not on other reimbursable expenses. The appellant was registered with Service tax department and discharging service tax on their service charges therefore, there was no suppression of facts hence the demand is hit by limitation also. On the same ground, penalty was not imposable invoking the provisions of Section 80. 7. Shri Ajay Kumar Samota, Ld. Superi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tants & 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: "5. It is reported that disputes have arisen on the issue of inclusion of such reimbursable charges, which are currently pending at various stages of dispute settlement mechanism. Certain field formations have also issued communications, directing that charges on certain activities incurred by CHAs are not covered under exclusions available to 'pure agent'. It is also reported that divergent practices as regards the re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....all 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./BL No./ packing lists is acceptable for the establishment of such nexus. Similar would be the case for statutory levies, charges by carriers and custodians, insurance agencies and the like; (f) Each charge for separate activities/services is to be covered either by a separate invoice or by a separate entry in a common invoice (showing the charges against each entry separately) issued by the CHA to his customer. In the latter case, if certain entries ....