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TMI Blog2016 (4) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... 6510/16/STB - Dated:- 3-3-2016 - M V Ravindran, Member (J) And C J Mathew, Member (T) For the Petitioner : Shri D Nagvenkar, Additional Commissioner (AR) For the Respondent : Shri Monarch Bhatt, Adv ORDER Per M V Ravindran These two appeals are filed by the revenue and the assessee against the Order-in-Appeal No. M.I/AV/267/2011 dated 06/05/2011. 2. Revenue is aggrieved by the order on the ground that the first appellate authority set aside the penalties while the assessee is aggrieved by the order on the ground that the first appellate authority has not considered that reimbursable expenses cannot be included in the gross value for discharge of service tax. 3. The appellant assessee is a clearing and forwardin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that as per Rule 6(8) of Service Tax Rules 1994, only on the gross amount of remuneration or commission would be paid to them by their principals for the service of clearing and forwarding ; since the expenses were incurred by the assessee and reimbursed to them by their principals for the service of clearing and forwarding of excisable goods, the same could not enter into the taxable value under Rule 6(8) of the Service Tax Rules, 1994 read with 67 of the Finance Act, 1994. The assessee further contended that the inclusion of such reimbursed expenditure was bad in law. 5. In accepting the case of the respondent/assessee, the Customs, Excise and Service Tax Appellate Tribunal referred to the decision rendered by the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of the business would also form part of the remuneration or Commission (by whatever name called). The phrase by whatever name called must necessarily have some link or reference or nature to the receipt of remuneration or commission. Thus, if a receipt is for reimbursing the expenditure incurred for the purpose, the mere act of reimbursement, per se, would not justify the contention of the Revenue that the same, having the character of the remuneration or commission, deserves to be included in the sum amount of remuneration / Commission. 8. As per Rule 6(8) of Service Tax Rules, 1994, the gross amount referred to therein would apply to receipts of such sum, which would bear the character of remuneration or commission, in that, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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