9911796707
TMI Blog2014 (5) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... demurrage is charged by the railways on account of detention of the goods in the rakes or at railway premises beyond the permissible period. This amount charged by the railways is paid by the respondent and is reimbursed to them on actual basis. The Commissioner (Appeals) in the impugned order has given a finding that he has examined a few samples of the railway receipts regarding demurrage/wharfage charges and he finds that the said amount are shown to have been received from PCL and that in view of this, he finds that the appellan’s submission that they had acted only as a pure agent is correct. As regards the local transport, the same is arranged by the respondent for sending the goods to the PCL’s godowns on their behalf or sending t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the charges for demurrages and wharfage being charged by the railways and also the expenses for local transport on actual basis. The point of dispute is as to whether the demurrage/wharfage and expenses for local transport are includible in the assessable value of the service. During the period of dispute, the respondent were not including these expenses in the value on which service tax was being paid by them. The Jurisdictional Assistant Commissioner vide order-in-original dated 10/6/08, taking the view that these expenses have to be part of the assessable value, confirmed the service tax demand of Rs. 2,57,648/- for the period from 01/10/01 to 30/09/06 alongwith interest and imposed penalties on them under Section 76, 77 and 78 of the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing expenses on wharfage/demurrage charged by the railway and on local transport, that this plea had not been made by the appellant before the original Adjudicating Authority and that in terms of Rule 6 (8) of the Service Tax Rules, 1994 prior to its omission w.e.f. 19/4/06, the value of taxable service in relation to services provided by C F agent to a client for rendering the services of C F operations in any manner shall be deemed to be gross amount of remuneration or commission by whatever name called, paid to such agent by the client engaging such agent and that though the word remuneration is not defined in the rules, this would cover all the expenses incurred by the C F agent. 4. Ms. Rinky Arora, Advocate, the learned Counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Commissioner (Appeals), the goods are loaded in the trucks/lorries mentioning PCL as the consignor and the appellant pay the freight only as an agent of PCL for which they are reimbursed. Here also, the respondent would have to be treated as pure agent of the PCL for payment of expenses for local transport. Thus, in respect of both, demurrage/wharfage charged by the railways and expenses on local transport, the respondent have acted only as agent of PCL and, as such, the expenses for these items reimbursed to them on actual basis by their principal - PCL would be not includible in the assessable value of the C F agent services provided by them. We, therefore, do not find any infirmity in the impugned order. The Revenue s appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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