TaxTMI 
TaxTMI 
2026 (10) TMI 312
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....espondent is falling under the category of 'clearing and forwarding agency' (C&F agency) service; b. whether there is service tax liability on the amount received in foreign currency by the respondent; or c. whether the amounts received are towards reimbursable expenses. 2. The brief facts are respondent is engaged in the activity of 'clearing and forwarding agency service' and 'transport of goods'. Alleging that the respondent had provided activities directly or by outsourcing part of the jobs to other entities and service tax was paid only on the agency charges for the period from October 2009 to September 2011, show cause notice (SCN) dated 20.10.2015 was issued demanding service tax, interest....
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....OL-966-HC-Del- ST relied upon by the adjudicating authority are not applicable to the facts of the present case. 4. Learned Counsel for the respondent drew our attention to the finding of the adjudication authority where it is held that: "26. As regards the THIRD allegation in the SCN that the assessee is collecting mark up on outsourced services and hence is not eligible for Pure agent benefit, it is observed that the SCN, other than making a bland assertion has not established the allegation with reference to input documents and output documents. With such a bland assertion, the SCN has gone ahead and proposed service tax demand on the gross receipts of the assessee, less service tax paid by the assessee. This allegation in th....
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....d by any evidence whatsoever and is therefore not sustainable. Per contra I find that the assessee has provided certificate from his Chartered accountant and other documentary evidence in support of their claim that there has been no mark up. 27. From the documents on record, it is also observed that the assessee has mentioned taxable and non-taxable portion of the value, separately, and have discharged appropriate service tax on the taxable value. Thereby, proposing demand of service tax on their gross receipts, without proper evidentiary support, is not sustainable in law. Moreover, the proposals in the instant SCN / SOD are based on audit conducted on their records, based on which an earlier SCN dt.08-04-2013 was issued covering....