2019 (11) TMI 177 - AT - Service Tax

Valuation - C F Agent services - inclusion of reimbursable expenses in the value of the taxable services - CENVAT credit of duty availed on various inputs services like GTA Service, Care Insurance Services etc. - HELD THAT - The matter is required to be reconsidered by the Original Adjudicating Authority in the light of subsequent declaration of law by Hon ble Supreme Court in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. 2018 (3) TMI 357 - SUPREME COURT . Similarly, the availability of Cenvat credit is also required to be re-examined afresh - Appeal allowed by way of remand.

Summary

Issues Involved:
1. Inclusion of reimbursable expenses in the value of taxable services
2. Denial of Cenvat credit on various input services

Analysis:

Issue 1: Inclusion of Reimbursable Expenses
The main issue in the present case revolves around the inclusion of reimbursable expenses in the value of taxable services provided by the appellant, a registered C & F Agent. The appellant argues that such expenses should not be included, citing the Hon'ble Supreme Court's decision in the case of Union of India Vs Intercontinental Consultants and Technocrats Pvt. Ltd. The appellant contends that the provisions of Rule 5 of Service Tax Valuation Rules, which were relied upon by the lower authorities, were held as ultravirus by the Supreme Court. Therefore, the appellant asserts that the entire demand should be set aside based on this decision.

Issue 2: Denial of Cenvat Credit
Another aspect of the case involves the denial of Cenvat credit on duty availed for various input services like GTA Service and Care Insurance Services. The appellant argues that such credit is admissible, citing various decisions in support of this claim. However, the Authorized Representative relies on the latest decision of the Hon'ble Supreme Court in the case of Ultra Tech Cement, which held that credit for outward transportation of goods is not admissible.

Court's Decision and Remand
After hearing both sides and considering the arguments presented, the Tribunal finds that the matter needs to be reconsidered by the Original Adjudicating Authority in light of the subsequent declaration of law by the Hon'ble Supreme Court in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. The Tribunal also directs a fresh examination of the availability of Cenvat credit. Consequently, the impugned order is set aside, and the matter is remanded to the Original Adjudicating Authority for further action. The appellant is assured an opportunity to present their case during the re-examination process.