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Showing contexts for: loading charges in Deep Chemicals vs Service Tax - Ahmedabad on 1 August, 2018Matching Fragments
3. Ld. Counsel further argued that the appellant are entered into contract with M/s TATA Chemicals Limited for the activity of C&F and packaging agent. The appellant have paid on service fee for their activities. The agreement also prescribes certain payments, as reimbursement, for various expenses. Following amount were been recover by the appellant.
"(i) The details of Godown rent, other fixed expenses, and loading charges for outward movement received by them from M/s Tata Chemicals Limited, They also stated that against these charges no service tax is payable as the said amount is not received as consideration for rendering C&F service and narrated the reasons as to why the said amount cannot be covered under C&F services.
(iii) Regarding other fixed expenses they informed that these are charged for the expenses incurred by them towards fixed capital reimbursement, VFFS machines, spares, interest on fixed capital investment and operator and helper salary, and are no related to remuneration or commission paid to clearing and forwarding agent by the client.
(iv) The loading charges for outward movement is for recovery of expenses incurred by them for loading charges. The recovery of expenses of loading for outward movement is not a remuneration or commission for C&F service and hence cannot be included in the value of taxable services."
5.3 Regarding the loading charges he stated that these charges are recovered at the rate of Rs. 16.20 Per MT from M/s TATA
5|Page ST/123/2009-DB Chemicals. These charges are for truck loading of the common salt at the time of dispatch of the goods.
5.4 The demand Show Cause Notice sought to include the charges under the heads of storage and warehousing services, cargo handling services and packaging services.
6. Ld. Counsel for the appellant argued that it is not permissible to vivisect one service into its components and demand of duty on such components. He relied on the decision of Hon'ble Apex Court in case Daelim Industrial Company 2007 (5) STR J99. He also relied on the decision of Tribunal in case Gujarat Chem. Port Terminal Co. Ltd Vs CCE 2008 (9) STR 286 (T) . Ld. Counsel on the relied on the Circular: