Custom, Excise & Service Tax Tribunal
Solaimalai Properties (P) Ltd vs Commissioner Of Central Excise, ... on 17 November, 2017
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH CHENNAI Appeal No.ST/77/2010 [Arising out of Order-in-Revision No.08/2009 ST (R) dt. 19.11.2009 passed by the Commissioner of Central Excise, Madurai] Solaimalai Properties (P) Ltd. Appellant Versus Commissioner of Central Excise, Madurai Respondent
Appearance:
Shri V.Parthiban, Advocate For the Appellant Shri S. Govindarajan, AC (AR) For the Respondent CORAM :
Honble Ms. Sulekha Beevi C.S. Member (Judicial) Honble Shri B. Ravichandran, Member (Technical) Date of hearing / decision : 17.11.2017 FINAL ORDER No. 42954 / 2017 Per Sulekha Beevi C.S The appellants are engaged in the services of clearing and forwarding agency. A show cause notice was issued alleging that they have not included the value of reimbursable expenses in the total taxable value of services and thus have short paid service tax. After adjudication, the original authority accepted the claim of the appellant and thus dropped the demand with regard to reimbursable expenses and also dropped the proposal to impose penalty.
2. In revisional proceedings, the Commissioner confirmed the demand with respect to reimbursable expenses and hence the appellant are now before the Tribunal.
3. On behalf of the appellant, Ld.counsel Shri V. Parthiban submitted that the issue whether reimbursable expenses can be included in the total value of taxable services is settled by the decision of Hon'ble jurisdictional High Court in the case of CST Chennai Vs Sangamitra Services Agency 2014 (33) STR 137 (Mad.). He submitted that even in the SCN, the allegation is that appellants have not included the expenses incurred by them for rendering services which have been subsequently reimbursed by their principals.
4. Ld. A.R reiterated the findings in the impugned order.
5. Heard both sides. The issue whether the reimbursable expenses, which are actual expenses without mark up, are to be included in the total value of taxable services is decided by the case relied upon by the ld. counsel. We hold that the demand is unsustainable. Impugned order is set aside. Appeal is allowed with consequential relief, if any, as per law.
(dictated and pronounced in court)
(B. Ravichandran) (Sulekha Beevi C.S)
Member (Technical) Member (Judicial)
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Appeal No.ST/77/2010