2026 (4) TMI 154

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.... the Order-in-Appeal dated 21.08.2012 in appeal no. ST/3046/2012, whereby, the order passed by original Adjudicating Authority dated 28.03.2012 has been upheld. The Adjudicating Authority had examined the leviability of service tax for the period July 2006 to October 2010 and confirmed the demand in terms of Show Cause Notice dated 02.09.2011 under proviso to Section 73(1). On adjudication, demand was confirmed as well as penalties under Section 76 and 78 were also imposed. 2. The issue, in brief, is that the appellant is engaged in the business of providing Clearing and Forwarding Agency Service (CFAS) to one M/s FMC India Ltd., (FMC) in terms of agreement dated 01.04.2005. The Department noticed that the appellants were being paid the ....

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....ncludable in the taxable value in terms of Rule 5(1) of Service Tax (Determination of Value) Rules 2006 read with Section 67 or otherwise. He further submitted that this issue is no longer res-integra in view of the judgment of the Hon'ble Delhi High Court in the case of M/s Intercontinental Consultants and Technocrats Pvt Ltd., Vs Union of India reported in 2012-TIOL-966-HC-DEL-ST, which was further upheld by the Hon'ble Supreme Court in the case of Union of India Vs M/s Intercontinental Consultants and Technocrats Pvt Ltd., reported in 2018 (3) TMI 357-SC. He further submits that the aforesaid decision of the Hon'ble Delhi High Court and Apex Court whereby Rule 5 was declared ultra vires has been followed consistently by Co-ordinate Bench....

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....nd forwarding agent. We find that Department has examined the books of account and noticed that in respect of certain amount, claimed under various heads from M/s FMC India Ltd., they have not paid service tax. The Department relied on the provisions under Rule 5(1) of the Service Tax (Determination of Value) Rules 2006 read with Section 67 to demand service tax in respect of such expenditure or cost which were incurred by the service provider in the course of providing taxable service for including the said expenditure. It is also admitted in the Show Cause Notice that all the expenses incurred by the assessee towards uses of godown, stationery, courier, telephone, loading and unloading charges will be reimbursed by their principal. Theref....