TaxTMI 
TaxTMI 
2024 (5) TMI 668
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....it Wing of the department, it was noted that the appellant has entered into a Clearing & Forwarding Agency Agreement with M/s.ACC Limited (M/s.ACCL, for short) and also a separate Goods Transportation Agreement. On verification, it was noted that the appellant is reimbursed freight charges by M/s.ACCL incurred by the appellant with regard to the transportation of goods by road as well as the railways carried out as part of C&F Agent service. 2. Apart from this, the appellant was also carrying out the transportation of goods of M/s.ACCL between the depots and the warehouses in Tamil Nadu. For such transportation, consignment notes were issued by appellant and M/s.ACCL was discharging service tax on such freight charges. 3. The Department w....
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.... in the taxable value as these were only reimbursable expenses. The department has confirmed the demand alleging that such reimbursable expenses are to be included in the taxable value. Further, the department has also alleged that the appellant has entered into C&F Agency Agreement only to evade the payment of service tax of freight charges. The Ld. Counsel submitted that the appellant had to transport some goods on behalf of M/s.ACCL from their depots to warehouses. These transportations were done on issuing consignment notes. As per the consignment note itself, the freight charges are to be paid by M/s.ACCL. The liability of service tax on such freight charges has been discharged by M/s.ACCL and a certificate has been issued to the appel....
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....the extended period cannot sustain. The Ld. Counsel prayed that the appeal may be allowed. 7. The Ld. A.R Shri Anoop Singh appeared and argued for the Department. Para-3 of the show cause notice was adverted to by the Ld. A.R to submit that the appellant had entered into two separate agreements; one for carrying out the C&F Agency Service and the other for Goods Transportation Service. The appellant was receiving freight charges and other charges from M/s.ACCL as reimbursements. These amounts were not included in the taxable value. So also, the appellant was receiving freight charges from M/s.ACCL and the appellant has not discharged service tax on this freight charges also. The appellant has to include the freight charges reimbursed by M/....
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....ACCL to them. The department is of the view that appellant has to include these reimbursement charges received from M/s.ACCL in the taxable value in terms of Rule 5 of Service Tax (Determination of Value) Rules, 2006 rad with Section 67 of the Finance Act, 1994. 12. The definition of "Clearing & Forwarding Agent" is reproduced as under : "Clearing and Forwarding Agent" means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operations in any manner to any other person and includes a consignment agent; (Section 65 (25) of the Finance Act, 1994) "Taxable Service" means any service provided or to be provided to any person, by a clearing and forwarding agent in re....