9911796707
TMI Blog2015 (10) TMI 1735X X X X Extracts X X X X X X X X Extracts X X X X ..... the value for discharge of Service Tax liability – Matter is squarely covered under the case of Link Intime Pvt. Ltd. Vs. Commissioner of Service Tax [2015 (7) TMI 591 - CESTAT MUMBAI] – Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... category of Share Transfer Agency and Registrar to an Issue. He would submit that the postage and the actual expenses are incurred by the appellant on behalf of the various companies on whose behalf they arranged posting of various shares allotted, share certificate, balance-sheet and notice for the AGM etc. It is his submission that they are functioning as an Agent of the Client and Registrar under SEBI Act for getting his share transfer agency and Registrar to an issue. He would submit that on this very same issue, this Bench of the Tribunal in the case of Link Intime Pvt. Ltd. Vs. Commissioner of Service Tax 2015-TIOL-1406-CESTAT-MUM has held that the actual expenses incurred for postages and reimbursement of other expenses are not to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to an Issue and registered with the SEBI for other purposes. He functioned as an agent of the company, those are intending to issue share certificate and other related activities, when such companies are coming to the market for raising the capital. 6.3 On perusal of the records, we find that there is no dispute as to the fact that the amount of Service Tax that is sought to be demanded, the amount collected by the appellant and reimbursement of postage charge and reimbursement of the expenses incurred for printing of Annual Reports for UTI issue and expenses incurred for mailing, printing share and binding charges, Telephone, Envelopes, Xerox etc. It is also undisputed that the amounts which have not been included by the appellant for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od post 01/04/2006. However, service tax on reimbursement of postage for the period 10/09/2004 to 31/07/2007 was not paid in regular course. Therefore, the department issued a show cause notice dated 24/04/2008 alleging short-payment of service tax during 10/09/2004 to 31/05/2006 and on reimbursement of postage for the period 10/09/2004 to 31/07/2007 received from their clients, namely, M/s. MRPL and M/s. TV Today Network Ltd., the total demand raised amounting to ₹ 4,62,27,547/-. 4.1. As regards the demand for the period prior to 01/05/2006, the appellant herein is rendering services of a Share Transfer Agent and Registrar to an Issue under the Securities and Exchange Board of India (Registrar to an Issue and Share Transfer Agents) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me is the position with respect to the cost incurred towards stationary articles used for sending various items by post. Therefore, these reimbursements on actual basis cannot form the value of taxable service at all. Therefore, the service tax demand by including cost of such expenditure in the value of taxable service is clearly unsustainable in law. Further, Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 has been declared ultra vires and has been set aside by the honble High Court of Delhi in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. (supra). Therefore, there is no authority provided for in the law for subjecting the reimbursement of expenses to service tax. There is also no stay against the Del ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
