Customs, Excise and Gold Tribunal - Bangalore
Alathur Agencies vs The Commissioner Of Central Excise And ... on 16 March, 2007
Equivalent citations: [2007]11STJ90(CESTAT-BANGALORE)
ORDER S.L. Peeran, Member (J)
1. The stay application and appeal are taken up together for disposal as per law, as the issue is covered by a large number of Tribunal rulings, including the ruling rendered by this bench in the case of Bhagyanagar Services v. CCE Final Order Nos. 1099 and 1100/2006 dated 22.06.2006. The Tribunal has followed the earlier ruling rendered in E.V. Mathai & Co. v. CCE . The issue is also covered by three more rulings viz. (i) Hindustan Syringes Pvt. Ltd. v. CCE 1998 (29) RLT 323; (ii) Rajasthan Cylinders and Containers v. CCE 1998 (29) RLT 423; and (iii) Bihar Foundry Engineering Works v. CCE . The issue is that the appellants were carrying on the function of clearing and forwarding. They were under the Finance Act and were discharging Service tax. They were collecting certain reimbursable expenses which were normally not paid by the appellants but by the persons for whom they were carrying on the function of Clearing and forwarding. The Revenue has proceeded to add these reimbursable expenses in the commission received by the appellants for charging Service Tax. The issue involved is service tax on outward freight. The appellants had also contended that the demands were barred by time, as there was no suppression of facts and all the facts were known to the department.
2. We have heard both sides in the matter. On this very issue, the Tribunal has already held that Service Tax is not leviable on these elements. Furthermore, the appellants are not paying these charges on this element, their principle have been discharging the same. Therefore, on this count also, the Service Tax is not leviable. Furthermore, all the details were declared to the department and, therefore, the Service Tax demanded from 01.01.2000 to 31.01.2002, issued after a lapse of several years, i.e. the Show Cause Notice dated 17.01.2005 is clearly barred by time. The appellants succeed both on merits as well as on time bar. The stay application and appeal are allowed in terms of the above cited judgments.
(Pronounced and dictated in open Court)