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TMI Blog2016 (4) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... ponent would tantamount to double taxation. Held that:- as per Rule 5(1) of Service Tax (Determination of Value) Rules, 2006, where any expenditure or costs are incurred by the Service provider in the course of providing service, all such expenditure or costs shall be included in the value for the purpose of charging Service Tax on said service. Further, Rule 5(2) ibid inter alia envisages that the expenditure or costs incurred by the service provider as a pure agent of recipient of service shall be excluded from the value of taxable service, if all the following conditions, are satisfied. Therefore, while discharging foreign C & F Agent raised composite bill / invoice liability under reverse charge, Service Tax is chargeable on said bil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, the applicant has to pay Service Tax on the gross value billed by C F Agent, excluding the expenditure incurred by C F Agent as pure agent', as defined in Rule 5 (2) of Service Tax (Determination of Value) Rules, 2006. 3. During proceedings before this Authority, applicant submitted that a foreign C F Agent would be incurring the expenses on behalf of the applicant with respect to freight, insurance, loading, unloading and handling charges of goods, etc. proposed to be imported. Further, all these expenses incurred are included in the valuation of goods as per Section 14 of the Customs Act, 1962 for the purpose of charging Customs duty. Therefore, charging Service Tax on said component would tantamount to double ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the Court proceedings, the Advocate of the applicant candidly admittedly that there is no statute to indicate that if customs duty is chargeable, Service Tax is not leviable on the same component. Therefore, we do not agree with the applicant on said aspect of double taxation. 5. Further, Notification No. 34/2012-ST dated 20.06.2012 and Notification No. 31/2010-Cus dated 27.02.2010 relied upon by the applicant are not applicable to the present and issue, as said Notifications are only in respect of packages or canned software and not applicable to the issue before us. 6. Applicant further submits that services by way of transportation of goods by an aircraft or a vessel from a place outside India up-to the Customs station of cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 5(2) ibid inter alia envisages that the expenditure or costs incurred by the service provider as a pure agent of recipient of service shall be excluded from the value of taxable service, if all the following conditions, are satisfied, namely; The service provider acts as a pure agent of the recipient of service when he makes payment to third party for the goods or service procured; The recipient of service receives and uses the goods or services so procured by the service provider in his capacity as pure agent of the recipient of service; The recipient of service is liable to make payment to the third party; The recipient of service authorizes the service provider to make payment on his behalf; The recipient ..... X X X X Extracts X X X X X X X X Extracts X X X X
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