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Issues involved: Interpretation of services rendered by the appellant, valuation of services for assessment, applicability of Circular dated 6-6-1997, financial hardship faced by the appellant.
Interpretation of services rendered: The appellant, a Custom House Agent, argued that they do not provide Clearing & Forwarding Agent services as alleged by the Revenue. They clarified that their activities involve loading, unloading, transportation, and other formalities within the Customs area, distinct from typical Clearing & Forwarding Agent services. The appellant maintained records, filed returns, and paid Service Tax regularly on Agency Commission. Valuation of services for assessment: The Commissioner included expenses like barge hiring, godown rent, and transportation costs in the valuation of services, contrary to the Board's Circular dated 6-6-1997 for Custom House Agents. The appellant contended that such expenses incurred on behalf of the principal should not be included in the service valuation. Applicability of Circular dated 6-6-1997: The appellant relied on the Board's Circular to support their argument that Service Tax should be computed only on gross service charges billed to the client, excluding expenses incurred on behalf of the principal. They sought a waiver of the pre-deposit of Service Tax and penalties, citing financial hardship. Decision: The Tribunal found that the appellant's activities align more with those of a Custom House Agent rather than a Clearing & Forwarding Agent. Considering the distinction made by the appellant and the Circular's guidelines, the Tribunal inclined to grant a full waiver of the Service Tax, interest, and penalties until the case's final disposal due to the substantial amount involved. The case was scheduled for final hearing on 24th January 2008.
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