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TMI Blog2018 (9) TMI 1588X X X X Extracts X X X X X X X X Extracts X X X X ..... ief facts are that the assessee are engaged in providing Custom House Agent Services, Port Services, Technical Inspection and Certification Services, etc. They have got centralized registration with the Tirunelveli Commissionerate for payment of service tax for various services. On intelligence gathered by the DGCEI, it was noticed that the assessee had not discharged appropriate service tax for the period 01.10.2002 to 31.03.2007. The officers noticed short payment of service tax on CHA services since the assessee had not included the reimbursable expenses incurred on behalf of their clients. Further, they had not included certain amounts in the name of DEEC endorsement charges, DEPB License Verification Charges, etc. In the case of reimbu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services, the assessee has filed Appeal No. ST/775/2010. The Department has filed Appeal No. ST/748/2010 against the order of Commissioner (Appeals) who set aside the demand for the extended period and also the demand under Business Auxiliary Services in respect of incentives received from the shipping liners. 2.1 Today when the matter came up for hearing, the Ld. Counsel Shri. V. S. Manoj appeared and argued on behalf of the assessee. 2.2 He submitted that the Commissioner (Appeals) has rightly set aside the demand under the category of Business Auxiliary Services in respect of brokerage/incentives received from the shipping liners. The said issue stands covered in favour of the assessee in the case of Lee & Muir Head Pvt. Ltd Vs. C.S.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count. 2.4 With regard to the denial of credit on input services also the Ld. Counsel submitted that the authorities below have wrongly denied the credit on input services and requested a chance for reconsideration of this issue. 3.1 The Ld. AR, Shri. K. Veerabhadra Reddy appeared and argued the matter on behalf of the Department. 3.2 He much stressed on the grounds stated in the appeal filed by the Department. He contended that the Circular relied by the Commissioner (Appeals) is not applicable. When the assessee has collected amounts over and above the actual expenses, the same cannot be considered as reimbursable expenses. Thus, such expenses have to be included in the taxable value and the Commissioner (Appeals) has erred in observin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants have suppressed facts with intention to evade payment of duty, is factually and legally correct and requires no interference. 5.3 The Ld. Counsel Shri. V. S. Manoj has requested to remand the matter in respect of the demand for the normal period. 5.4 In regard to the issue of reimbursable expenses as well as the denial of CENVAT Credit on input services, it is submitted by the Ld. Counsel that in some of the instances, the assessee have collected profit/margin over and above the reimbursable expenses, but in most cases they have not collected it. However, this aspect requires verification. If the assessee have not collected margin over and above the actual reimbursable expenses, the decision in the case of Intercontinental Consul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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