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TMI Blog2018 (3) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue. - ST/430/2010 - Final Order No. 40529/2018 - Dated:- 26-2-2018 - Ms. Sulekha Beevi, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri S. Govindarajan, AC (AR) for the Appellant Shri. S. Durairaj, Advocate for the Respondent ORDER Per Bench The facts of the case are that M/s. PSTS Sons Pvt. Ltd., the respondents herein are engaged in rendering Custom House Agents Service and Steamer Agents Service. It appeared to the department that the respondents had not paid the following tax liabilities:- i) Delayed service tax payment was made during the period from 01.04.2005 to 31.08.2005 ii) Wrong availment of service tax/Cenvat credit on certain ineligible input services such as grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of duty, interest and penalties on (i) consolidated charges for the period from 04/2005 to 09/2005 and (ii) Telephone, Fax, Telex for 03/2005 to 09/2005. Penalties imposed under Section 76 and 78 in respect off wrong availment of Cenvat credit and delayed payment of service tax were also set aside. Department is aggrieved over this order and has filed this appeal. 2.1 On 26/02/2018, when the matter came up for hearing, on behalf of the department, the Ld. AR, Shri S. Govindarajan, AC, reiterated the grounds of appeal. He also made the following submissions which are summarized as under:- i) The value of the taxable service in relation to service provided by a steamer agent to a shipping line, shall be the gross amount charged by s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . AR drew our attention to CBEC Circular F.No. B-43/1/97 dated 06.06.1997, which has interalia clarified that the service tax is to be computed on the gross service charges by whatever head/nomenclature billed by the custom house agent to the client. 3. On the other hand, on behalf of the respondents, Shri S. Durairaj, submitted that the differential service tax which was demanded in the SCN related to reimbursable expenses in the name of Telephone, fax and telex charges from their clients. So also differential service tax of ₹ 18,44,599/- proposed in the SCN relates to consolidated charges for the CHA and Steamer services provided by them. All these are in the nature of reimbursable charges and hence there can be no levy of servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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