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TMI Blog2012 (9) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ferent from the one for which demand was initially issued. There is also the issue that Clearing and Forwarding Service could be rendered using a godown made available by the service recipient. In this case the service recipient has taken godown on rent from the service provider itself. This has to be seen as a case of tax planning rather than tax evasion. Hence, extended period of time could not have been invoked. Therefore, notice dated 13.9.2006 is held to be time barred – Decided in favor of assessee - Service Tax Appeal No.575 of 2007-Cus - ST/A/496/12-CUS - Dated:- 14-6-2012 - Archana Wadhwa, Mathew John, JJ. For Appellant: Shri Mayank Garg, Adv. For Respondent: Shri K P Singh, AR Per: Mathew John: The appellants wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived they were paying service tax at appropriate rates during the relevant time. There were clarifications issued by the CBEC to the effect that reimbursed expenses given by the service receiver did not form part of the assessable value of such service. According to them the expense for the godown is of the nature of reimbursable expenses and therefore they did not include the value in the consideration received for giving godown on hire. It is their contention that giving godown on hire cannot in the normal course be understood to be a part of activity of clearing and forwarding agent and the argument of Revenue that the consideration received as rent for the godown should be included in the value of services of clearing and forwarding ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en done without a storage space. So the cost of storage space formed integral part of the value of service provided. Further he argues that the appellants had entered into a separate contract for leasing out godown with the only intention of showing lesser value of the service of "Clearing and Forwarding" and thus to reduce tax incidence. Since the contract was hidden from the department, this is a case involving suppression and hence extended period for issue of demand for tax short paid can be invoked- in this case. 7. We have considered arguments on both sides. Firstly, there is a legal infirmity that tax is demanded under a category of service different from the one for which demand was initially issued. There is also the issue that C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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