Custom, Excise & Service Tax Tribunal
M/S. Jayam Impex Pvt. Ltd vs Cst, Chennai on 19 December, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH AT CHENNAI ST/186/2007 (Arising out of Order-in-Appeal No. 16/2007-(M) (ST) dated 27.04.2007 passed by the Commissioner of Central Excise (Appeals), Chennai). M/s. Jayam Impex Pvt. Ltd. : Appellant Vs. CST, Chennai : Respondent
Appearance Ms. J. Ragini, Adv., For the applicant Shri S. Govindarajan, AC (AR) For the respondent CORAM Honble Shri D.N. PANDA, Judicial Member Honble Shri MADHU MOHAN DAMODHAR, Technical Member Date of Hearing/Decision: 19.12.2016 FINAL ORDER No. 42452 / 2016 Per: D.N. Panda The precise question involved in this appeal is whether the discount/incentives received by the appellant from Container Freight Stations (CFS) shall form part of the assessable value of the considerations received. Since the character of the receipts is at par with the reimbursement of expenses and taxability of reimbursement issue is pending disposal before the Apex Court on the question as to whether reimbursement shall form part of the assessable value, it is considered proper to send the matter back to the ld. Adjudicating authority to dispose the same in the light of the Apex Court judgment that may come up in the case of Bhagwati Trading Company Vs. Commissioner 2015 (325) ELT A163 (S.C.) .
2. It may be stated that nothing is apparent from record as to whether above two elements have depressed the assessable value by any means. So also there is nothing on record to exhibit that depressing the assessable value appellant was benefitted by any means. In absence of any nexus came to record, the appellant may not be liable to service tax in respect of the above two elements. However, due to our observation aforesaid, the matter is remanded to the adjudicating authority to dispose the matter in the light of Apex Court judgment.
3. It is made clear that in the event of taxability, since valuation issue was in dispute and involves interpretation of law, no penalty is imposable unless otherwise required by law.
4. In the result, appeal is remanded to the adjudicating authority with above direction.
(Dictated and pronounced in open Court)
(MADHU MOHAN DAMODHAR) (D.N. PANDA)
TECHNICAL MEMBER JUDICIAL MEMBER
BB
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