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TMI Blog2019 (2) TMI 1877X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act, as amended, and Rules made thereunder and made payment of service tax only on a portion of gross amount received for providing the taxable service. The service tax amounting to Rs. 64,55,953 (Rs. Sixty Four Lakhs Fifty Five Thousand Nine Hundred and Fifty Three only) were alleged to be evaded. The show cause notice was thus issued for recovery of the said amount under the provisions of Section 73 of the Act along with interest under Section 75 of the Act. Penalties were also proposed against the respondent under Sections 77 and 78 of the Act. 3. The show cause notice was issued on the investigation being conducted by the Directorate General of Central Excise Intelligence (DGCEI), on the basis of a intelligence that the respondent were charging amount to Rs. 1,500/- to Rs. 2,000/- per container towards the Services Charge, however, the Service Tax was being discharged only on the value of Rs. 300/- per container only. During the search of the premises of the respondent, it was revealed that the premises of respondent was being shared by the M/s. Deep Handling Services, Ludhiana (for short 'Deep'), who was providing CHA services under license of M/s. Pooja Travels an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulation. But there are certain exceptions under Rule 3 of the CHA Regulations. CHA Regulations which has been impressed upon by the Revenue is reproduced as under : 3. Customs House Agents to be licensed. - No person shall carry on business as a Customs House Agent relating to the entry or departure of a conveyance or the import or export of goods at any Customs Station unless such person holds a licence granted under these regulations : Provided that no licence under these regulations shall be required by :- (a) an importer or exporter transacting any business at a Customs Station solely on his own account; (b) any employee of any person or a firm transacting business generally on behalf of such person or firm, and holding an identity card or a temporary pass issued by the Deputy Commissioner of Customs or Assistant Commissioner of Customs; (c) an agent employed for one or more vessels or aircrafts in order solely to enter or clear such vessels or aircrafts for work incidental to his employment as such agent. 6. It is also contended on behalf of the Revenue that the respondent was acting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy and Technocrafts Private Limited v. Union of India [2018-TIOL-76-SC-ST = 2018 (10) G.S.T.L. 401 (S.C.)]. The amount which has been charged from the client by the respondent is nothing but the reimbursement charge, which is not be included for the purpose of payment of Service Tax in terms of Section 67 of the Act. Further Learned Advocate also relied upon the decision of M/s. Link Intime India Private Limited v. Commissioner of Central Excise, Thane-I [2015 (38) S.T.R. 705 (Tri.-Mumbai)], wherein it is held that the various expenditure such as posting charge etc., as pure agent is not includible in the taxable service rendered by the appellant. Paragraph 4.1 of the order which is relevant is as under; 4.1 As regard the demand for the period prior to 1-5-2006, the appellant herein is rendering services of a 'Share Transfer Agent' and 'Registrar to an issue' under the Securities and Exchange Board of India (Registrar to an Issue and Share Transfer Agents) Rules, 1993 and the connected regulations. The said service came under the tax net for the first time on 1-5-2006. Therefore, the question of demanding any service tax on reimbursement of expenditure would not arise at al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the definition of Customs House Agent under Section 65(35) of the Act and taxable services under the provisions of Section 65(105) of the Act. We also find that the respondent has recovered certain amount from their clients towards service provided by them. This amount needs to be appropriated and the same has rightly been done by the adjudicating authority in the impugned order. Further collection of the extra amount which is various expenses incurred for the services like documentation expenses, crane handling charges, labour charges, weighment expenses and miscellaneous expenses and the service tax on said debit note was rightly not discharged by the respondent on treating them as reimbursement expenses. The transportation charges etc. had been paid by their client and the Service Tax on the said charges had also been discharged by their client as consignee on reverse charge basis. Therefore, the same cannot be charged to Service Tax on account of the respondent once again. We also find that the respondent has erroneously got themselves registered with the Service Tax Department under the category of Customs House Agent and paid Service Tax. The erroneous registration will not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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