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TMI Blog2023 (9) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. wherein it was held by Hon ble Supreme Court that reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax only w.e.f. 14th May 2015. The adjudicating authority has rightly dropped the demands. The department has not brought in any evidence to the contrary. Accordingly, the department appeal is liable to be rejected - Appeal of Revenue dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... n and presumption and not supported by any corroborative evidence. But in the Show Cause Notice it was specifically alleged that in spite of repeated letters, the Respondent did not furnish the requisite information although as per Form No. 3 CD part-B under Section 44 AB of the Income Tax Act, 1961, the Respondent had declared their nature of business or profession under column 8(a) as Commission Agent. (iv) The demand portion of irregular Cenvat credit of Rs. 75,577/- and Rs. 9,751/- has also been dropped without any mention of the particular documents based on which the Respondent made themselves entitled to the said amounts of credit. (v) In the Show Cause notice it has been alleged that the Respondent is a holder of Service Tax R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the demand. We will now examine each of the demand based on his findings and the grounds of appeal raised by the department. (i) Demand of Rs. 78,51,593/- (Service Tax) and Rs. 8,019/- (Education Cess): The assessee acted as a CFA of M/s. Century Cement in the state of Tripura during 2001-02 to 2005-06. They realized charges for handling, loading, unloading, transportation of cement, warehousing, business auxiliary service and service charge from their clients. It was found that apart from service charges received as remuneration from the client, all other amounts received have been included in the taxable value of the CFA service for raising demand. On perusal of the job assignment letters issued by their principal, it is observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reight. These components of consolidated rates viz. handling charge, local delivery charge and secondary freight were not taxable as CFA service. Thus, the demand of Service Tax on the basis of consolidated rate is baseless and void of merit. We agree with the findings of the Adjudicating authority. When a consolidated charge is available, it cannot be artificially bifurcated to arrive at some charges seperatley to demand service tax. Hence, we hold that the impugned order dropping the demand on this count is sustainable. (iii) Demand of Service Tax of Rs. 39.43,758/- and Education Cess f Rs. 35,290/-: This amount relates to the period 1999-2000, 2000-2001 and 2006-07 and has been demanded on the basis of quantity of cement dispatched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Notification No. 32/2004-ST dated 03.12.04 and in the impugned notice it was alleged that the concerned transporters had no registration number and no declaration as required under the said Notification was given. It was found that in the instant case, the Respondent has submitted copies of certificates from different GTAs and the said declarations given by the GTAs were valid documents. The demand of Rs. 3,66,497/- and Education Cess of Rs. 7,330/- is not sustainable. (vi) Demand of Service Tax of Rs. 25,748/- and Education Cess of Rs. 515/-: The same relates to non-payment of Service Tax on GTA Services on Cement freight and cartage freight during 2004-05. No documentary evidence regarding payment of tax or declaration as require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposition of penalty and charging of interest and has dropped the rest amount of demand of Service Tax of Rs. 2,74,46,799/- and Education Cess of Rs. 1,75,870/-.The revenue appeal has questioned the veracity of the documents submitted by the respondent in relation to declarations from various transporters, which relate to the demand of Rs. 3.66 lacs (approx) only. The appellant did not bring on record a single evidence or fact, contrary to the submissions made by the respondent. Therefore, the documents have to be admitted. 8. Regarding trading profit, relating to demand of Rs. 59,425/- the demand was sought to be confirmed by the Revenue on the basis of declaration of the nature of business in Form 3CD as a commission agent. The demand c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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