2006 (10) TMI 459 - AT - Service Tax

Summary

Issues involved: Interpretation of Service Tax rules regarding inclusion of loading expenses, cost service charges, and godown charges in the value of tax to be charged for payment by Clearing and Forwarding Agents.

Summary:

Issue 1: Inclusion of incidental charges in Service Tax calculation
The appellants, Clearing and Forwarding Agents, were required to pre-deposit Service Tax for loading expenses, cost service charges, and godown charges. They contended that these charges should not be part of the service rendered by them, and they should only pay tax on the commission received. The Chennai bench's stay in a similar case supported the appellants' argument, citing Trade Notices, DGST clarifications, and Rule 6(8) of Service Tax Rules, 1994. The Tribunal found merit in the appellants' argument and granted a full waiver of pre-deposit, instructing the Revenue not to recover any amount until the appeal is disposed of.

End of Summary