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TMI Blog2024 (7) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... n providing the GTA services and no Service Tax is required to be paid by them since the Service Tax liability rests on the recipient of the service. The service Tax is not required to be paid on account of reimbursable expenses received by the Appellant - the impugned order is not legally sustainable and we set aside the same and allow the Appeal on merits. As a matter of fact, the Show Cause Notice itself was issued based on the values shown in the Balance Sheet and Profit Loss Account. In respect of the major portion of the demand, no Service Tax is payable since the service involved is that of GTA services. There are no justification in invoking the extended period for confirming the demand. According, the confirmed demand is set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich falls under the category of GTA Services. In case of Agreement with Tata Steel Ltd, Bhubaneswar, there are separate agreement for C F Services and transportation of goods. For all such transportation activities undertaking by them, the Appellants are issuing Consignment Notes specifying the quantity along with the details of the consignor and consignee. Based on this Consignment Note, the Appellant is realizing the freight amount. 3. Similarly, in case of Tata Steel Ltd, Guwahati, Handling services and transportation services are specified separately in the Agreements. In respect of GTA Services provided to Guwahati unit of Tata Steel, Consignment Notes and invoices are issued. The Appellants submit that since they are providing GTA se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the period 2010-11 and 2011-12, they have received re-imbursement of Rs. 3,91,584/- and 3,38,604/-. For the expenses incurred for physical stock verification, which undertaken for the Bhubaneswar Unit of Tata Steel. Apart from this, one more reimbursement was Rs. 2,73,489/- was received from the principal for the expenses incurred as pure agent . As an evidence, the copies of such invoices have been annexed at Appeal Page No. 252-270 and at Page No. 220-249. In respect of the reimbursement of expenses, the Appellant relies on the case law of CST, Vs. Indo Arya Logistics [2016 (12) TMI 538 CESTAT- New Delhi]. They have also relied on the judgment of Delhi High Court in the case of Intercontinental Consultant and Technocrats Pvt. Ltd- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, he justifies the confirmed demand. 12. Heard both sides and perused the Appeal Papers and other documents placed before us. 13. We find that the Appellant has brought in proper evidence to the effect that the major portion of the quantified demand is on account of their turnover pertaining to GTA services. As can be seen from the Table reproduced above. 14. The documentary evidence placed in terms of the Consignment Notes, Invoices and Certificate issued by one of the clients OCP clarifies that without any dispute the Appellant has been providing the GTA services and no Service Tax is required to be paid by them since the Service Tax liability rests on the recipient of the service. 15. So far as the amounts received by them on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e services. As a fortiori, any other amount which is calculated not for providing such taxable service cannot a part of that valuation as that amount is not calculated for providing such taxable service . That according to us is the plain meaning which is to be attached to Section 67 (unamended, i.e., prior to May 1, 2006) or after its amendment, with effect from, May 1, 2006. Once this interpretation is to be given to Section 67, it hardly needs to be emphasised that Rule 5 of the Rules went much beyond the mandate of Section 67. We, therefore, find that High Court was right in interpreting Sections 66 and 67 to say that in the valuation of taxable service, the value of taxable service shall be the gross amount charged by the service provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not legally sustainable and we set aside the same and allow the Appeal on merits. 19. We also find force in the arguments of the Appellant that they are registered with the Department and they have been paying the Service Tax and filing the ST-3 Returns. As we have observed above, almost the entire demand quantification has been proved to be erroneous by the Appellant by way of documentary evidence produced. The Department has not come out with any concrete evidence to the effect that there was any attempt by the Appellant to suppress any facts. 20. As a matter of fact, the Show Cause Notice itself was issued based on the values shown in the Balance Sheet and Profit Loss Account. In respect of the major portion of the demand, we have held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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