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TMI Blog2018 (12) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ing service tax on the same. The department, however, noticed that the appellant received certain amount from their consignors against various expenses incurred by them and the amount of such reimbursed expenditures have not been included in the taxable value of service by the appellant for payment of the service tax. Accordingly, a service tax demand for the period 2001-2002 to 2003-2004, demanding a service tax of Rs. 1,47,710/- under Section 73 (1) of the Finance Act, 1994 was issued and penal provision under Section 76, 78 of the Finance Act, 1994 were also invoked. The matter was adjudicated by learned Assistant Commissioner vide his order dated 30th October 2009 wherein the above amount of the service tax alongwith penalty under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te has emphasized that with regard to the drug licence fee they have only worked as a pure agent and therefore the reimbursement of such expenditure cannot be included in the taxable value of the service. The learned Advocate has also relied on certain instructions issued by the CBEC as well as this Tribunal's order in the case of Nazeer & Co. vs. CCE, Kochi - 2009 (13) S.T.R. 672 (Tri. - Bang.). 3. We have also heard learned Departmental Representative who has reiterated the findings of Commissioner (Appeals) in his submissions. 4. We have heard both the sides. The Department was of view that the expenses which the appellant has got reimbursement from the service recipient were in the nature of freight, cartage, CFA, LOC, packing materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be such amount as, with the addition of tax payable, is equal to the gross amount charged. (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation. - For the purposes of this section, - (a) ["consideration" includes - (i) any amount that is payable for the taxable services provided or to be provided; (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which shall, in no case be less than the cost of provision of such taxable service". 6. It may be seen from the provisions of Section 67 (3) that the taxable value of a service includes the gross amount charged for taxable service and it will include any amount received by the service recipient for providing the taxable service. Since, the appellant have been working as C&F agent and have been incurring various expenditures, the nature of such expenditure whether same is necessary for providing the taxable service or not need to be seen by the Assessing Officer. Now on perusal of the type of expenditures which have been reimbursed to the appellant in certain items like drug licence charges, telephone charges incurred on behalf of the servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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