2024 (2) TMI 1305

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.... various customers. It is alleged that in the process of rendering said services, certain expenses are incurred viz. inspection charges, property evaluation fees, postage charges etc. during the period April 2010 to March 2016. Alleging that the service tax was not paid by including the value of the said expenses in their gross transaction value, show-cause notices were issued proposing recovery of total service tax of Rs.20,44,84,816/- for the said period along with interest and penalty. On adjudication, the learned Commissioner dropped the notice. Hence, the Revenue is in appeal. 2. At the outset, the learned AR for the Revenue reiterating the grounds of appeal submits that even though expenses incurred by the respondent towards postage,....

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....o subject to service tax levy as there is no consideration involved. I have verified the year-wise figures of taxable value proposed in the SCN and find that same are the figures reflected under the sub-head 'postage telegram and telephone' under the head 'Administration and other Expenses' in the expenditure account of the notice for the respective years. In this regard, I have perused the audit objection by CERA, based on which the demand is proposed. The findings of CERA was that the notice followed the practice of recovering expenses incurred towards providing gold loans such as inspection fee, fees for loans, property valuation fee, monthly/periodical postage charges, inspection fees etc, which were credited in the corresponding accoun....