9911796707
TMI Blog2012 (3) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... d of Service Tax of Rs. 99,32,373/- and Rs. 58,36,043/- and also imposed various penalties on the Appellant No. (1) and its Director, Shri Sanjay Kumar Choudhary, Appellant No. (2) under various provisions of Finance Act, 1994. 2. Briefly stated the facts of the case are that the Appellant Firm is registered as a provider of service of clearing and forwarding agent falling under Chapter 5 of the Finance Act, 1994 with effect from 14.12.1999. The Officers of the DGCEI of Anti-Evasion initiated proceedings against the Appellant for not arriving at the correct value of Service Tax and did not pay the Service Tax on the actual value received as a C F Agent. Two show cause-cum-demand notices were issued for demanding the Service Tax. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so the contention of the learned AR that the Larger Bench in the case of Sri Bhagavathy Traders (supra) has laid down certain guidelines for inclusion of re-imbursement charges. 5. In his rejoinder, learned Advocate for the Appellants submitted that before the decision of the Larger Bench in the case of Sri Bhagavathy Traders, the aspect of re-imbursement was already clarified in the earlier decisions and nothing new had been pronounced in the said decision. However, he submitted that in case the matter is remanded, all the issues may be kept open. 6. We have considered the submissions and perused the records. Admittedly, the above-cited decisions i.e. (i) Naresh Kumar Co. Pvt. Ltd.; (ii) Team S S; (iii) Agarwal Colour Advance Pho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... negotiated between him and supplier of the raw materials and uses the material for manufacture of the final products which he sells, the question of his collecting the cost of raw materials as reimbursement does not arise. The concept of reimbursement will arise only when the person actually paying was under no obligation to pay the amount and he pays the amount on behalf of the buyer of the goods and recovers the said amount from the buyer of the goods. 6.4 The claim for? reimbursement towards rent for premises, telephone charges, stationery charges, etc. amounts to a claim by the service provider that they can render such services in vacuum. What are costs for inputs services and inputs used in rendering services cannot be treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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