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TMI Blog2019 (5) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006 to September 2007 and also appropriated an amount of Rs. 25,72,676/- paid by the assessee during the course of investigation against the confirmed demand. The Commissioner also held that the assessee is liable for interest under Section 75 of the Finance Act, 1994 and also imposed penalties under Sections 76 and 78. 2. Briefly the facts of the present case are that the appellants are engaged in the activity of Customs House Clearing Agency based on a licence from the Customs department in respect of export and import of cargo at various sea ports, airports and inland container depot, container freight stations and the deemed ports like SEZ etc. they registered under the Custom House Agent which became taxable service w.e.f. 19/04/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es under Sections 76 & 78 on the allegation that the appellant was liable for service tax in respect of certain amount received towards reimbursement expenses which were not supported by bills and amounts received from certain clients wherein the appellant has claimed ineligible exemption as service rendered to certain SEZ clients. After following due process, the Commissioner has confirmed the demand and hence the present appeal. 3. Heard both sides and perused records. 4.1. Learned counsel for the appellant submitted that the impugned order is not sustainable as the same has been passed without properly appreciating the facts and the law and the binding judicial decisions. He further submitted that the impugned order has been passed w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 5(1) of the Service Tax (Determination of Value) Rules - only with effect from May 14, 2015, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax . : Undoubtedly, Rule 5 of the Rules, 2006 brings within its sweep the expenses which are incurred while rendering the service and are reimbursed, that is, for which the service receiver has made the payments to the assessees. As per these Rules, these reimbursable expenses also form part of 'gross amount charged'. Therefore, the core issue is as to whether Section 67 of the Act permits the subordinate legislation to be enacted in the said manner, as done by Rule 5. High Court was right in interpreting Sections 66 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eby Clause (a) which deals with 'consideration' is suitably amended to include reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service. Thus, only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax. 4.2. He further submitted that in the appellant's own case for the previous, this Tribunal has allowed the appeal of the appellant. The said decision is reported in 2018-TIOL-2415-CESTAT-BANG. Besides this, the appellant has also relied upon the following decisions:- i. GAC Shipping (India) Pvt. Ltd. [2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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