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TMI Blog2018 (10) TMI 1556X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. Joint Commissioner is reinstated - appeal allowed. - Appeal No.ST/19/2009 - FO/76827/2018 - Dated:- 22-10-2018 - SHRI P. K. CHOUDHARY, JUDICIAL MEMBER And SHRI V. PADMANABHAN, MEMBER (TECHNICAL) Shri Manish Rastogi, Advocate for the Appellant Shri K. Choudhary, Suptd.(AR) for the Revenue ORDER Per Bench : The present appeal has been filed challenging the Order-in-Original No.10-ST/Section/84/Comr./2008 dated 31.10.2008. Vide the above order, the Adjudicating Authority, the Commissioner(Patna) passed the order by exercising the power of Revision, which was available to the Commissioner at the relevant time in terms of Section 84 of the Finance Act, 1994. The ld. Commissioner passed the said order and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to ₹ 5,86,019/- as per the following details: S.No. Activity/entry in the ledger account Service Tax involved 1. Opening balances from last year 1,15,759/- Adjustments 1,02,478/- Reimbursement of expenses Rebagagging charges Office 6705/- expenses 351/- Reimbursement of service tax 38,605/- Transportation expenses 2,22,210/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the ld. Commissioner. 5. We have heard both sides and perused the appeal records. 6. The dispute is only with reference to the service tax demand totaling to ₹ 5,86,019/-. Relief for such amount has been granted by the Joint Commissioner, but the ld. Commissioner has taken the view that such relief was not given appropriately and hence, the demand for service tax is justified. Relief was extended on account of the following reasons; a) deduction on amount of reimbursement of certain expenses. b) selling commission, c) Outward transportation charges received from the clients. d) opening balance of the ledger account. e) inter account adjustment. 7. From the nature of the amounts it is fairly obvious that suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, misc. office expenses and reimbursement of Service Tax. All these expenses were shown separately and reimbursed on basis of separate bills charged separately, which have been adduced by the notice and carefully gone through by me. Hence service tax to the tune of ₹ 45661/- on these reimbursement, need to be set aside relying upon above rule and ratio of Collector Vs. Champhar Drugs Liniments 2006 (2) STR 81 (Commr. Appeal). It holds, interalia, that these agents charge separately for incidental services provided to the clients such as warehousing and storage of goods in own godown. They also recover expenses such as portage, courier, telephone, freight, cartage, octroi, loading and unloading charges etc. the reimbursement of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision has been followed in Bhagyanagar Services Vs. CCE, Hyderabad [(2006) TIOL 1253 (ESTAT Bang.)]. Hence the Show Cause Notice proposing to levy Service Tax to the tune of ₹ 2,22,210/- on the amount of outward transportation cost should be set aside. The opening balance and inter account transfer are clearly not a part of gross value of taxable service, which need to be deducted. The opening balance shall be reflected in parts ledger irrespective of whether or not services for the period have been rendered. Similarly inclusion of inter account transfer would lead to double taxable on the chargeable amounts. Total Service Tax liability on this amount to the tune of ₹ 2,18,237/- also needs to be deducted from the proposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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