TaxTMI 
TaxTMI 
2026 (9) TMI 1596
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....d the freight charges and insurance on their clients and the value of such freight and insurance was not added to the value of service provided, a Show Cause Notice came to be issued on 21.03.2016 for the transactions pertaining to the year 2014-15. After due process, the lower authorities have confirmed the demand. Being aggrieved, the Appellant is before the Tribunal. 2. The Ld.Counsel, appearing on behalf of the Appellant submits that admittedly the Appellant is providing the service under 'Erection, Commissioning' category. For all the amounts received as consideration towards erection and commissioning, they have been discharging the Service Tax liability. Apart from this service, based on the requirements of the clients, they engag....
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....d.Counsel prays that the Appeal may be allowed. 5. The Ld.AR for the department reiterates the findings of the lower authority. He submits that the Appellant has collected the insurance and freight charges from the clients on which Service Tax has not been discharged by them. Accordingly, he justified the confirmed demand. 6. Heard the parties and perused the appeal papers. 7. We have gone through a sample of the invoice raised by the Appellant towards insurance and freight charges which is reproduced below: 8. From this invoice, we find that theinvoice raisedon the client is purely on account of re-imbursement of freight charges and insurance.It is also seen that Appellant has not charged any Service Tax on this invoice. 9. ....
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....uch manner as may be prescribed" is expressly made subject to the provisions of sub-section (1). The thread which runs through Sections 66, 67 and Section 94, which empowers the Central Government to make rules for carrying out the provisions of Chapter V of the Act is manifest, in the sense that only the service actually provided by the service provider can be valued and assessed to service tax. We are, therefore, undoubtedly of the opinion that Rule 5(1) of the Rules runs counter and is repugnant to Sections 66 and 67 of the Act and to that extent it is ultra vires. It purports to tax not what is due from the service provider under the charging Section, but it seeks to extract something more from him by including in the valuation of the t....
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....r law. (Dictated and pronounced in the open Court.) ============= Document 1 (99) 131 005 IT INDO POWER PROJECTS LIMITED Clo Dr. A. C. Sharmah, Rupkonwar complex, Khanamukh Check Gate West Jhalukbarl, Guwahati - 14 19619999354 Assam Composite Regn, No .: 10490032264 The Chiel General Manager (RE), Asson Stato Electricity Board, ch Sleor, Dijulce Bhawan, Faltan Bazar, Curahati - 261 001 CGI(RE)IRGCVY/LA-1/Addl. Work/KAM-1(c)/2012-13/E/03 dt. 31.10.2012 25 PER ENCLOSED ANNEXURE Assam State Electricity Board INVOICE NO. 01 /1/3864 DATE 03.05.2013 RUA BILL NO. DATE Our JOB NO. 01-0/17-13/206 LR /RR NO. & DATE AS Der Enclosure CHALLAN NO. & DATE As per Enclosure MODE CUS. S.T NO. DOC. THRO&#....