2006 (11) TMI 193 - AT - Service Tax

Services of C & F Agency - revenue has proceeded to demand Service Tax on freight, loading and unloading and other expenses incurred by the appellants - issue is covered in assessees favour in Bhagyanagar Services v. CCE and in E.V. Mathai & Co. v. CCE - elements required for adding to the service tax is restricted to the amounts received by them for carrying on the services of C & F only - other elements like loading, unloading charges are not required to be added to the Service Tax

Summary

Issues:
1. Demand of Service Tax on freight, loading, unloading, and other expenses incurred by the appellants.

Analysis:
The appellants, engaged in C & F Agency services, were required to pre-deposit Service Tax amounts. The revenue demanded Service Tax on various expenses incurred by the appellants. The consultants argued that previous judgments by the same Bench supported their position. Specifically, they referred to the case of Bhagyanagar Services v. CCE and E.V. Mathai & Co. v. CCE to assert that elements like loading and unloading charges should not be added to the Service Tax for C & F agency services. The departmental representatives, however, maintained the departmental view. After careful consideration, the Bench concluded in favor of the appellants, citing that only amounts received for carrying out C & F services should be subject to Service Tax, excluding additional elements like loading and unloading charges. Consequently, the stay applications and appeals were allowed based on the precedent set by the cited judgments, providing relief to the appellants.