9911796707
TMI Blog2025 (1) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... to explicate that the petitioner had indeed incurred expenses as pure agent on behalf of the customers / clients, the decision of the 2nd respondent in the Impugned Order-in-Original 16-21/2021 vide DIN No.20211059TK0000555CB8 dated 26.10.2021 will not warrant any interference. However, the fact remains that the petitioner is providing Clearing and Forwarding Services and that of a Goods Transport Agent (GTA) / Goods Transport Operator (GTO). Therefore, to balance the interest of the petitioner and the respondents and considering the fact that the disputes pertains to the period starting from April 2008 ending with 2017 i.e., 30.06.2017, this Court is inclined to quash the Impugned Order and remits the case back to the respondents to pass a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses as a pure agent for its customers which was sought to be taxed in terms of the above mentioned Show Cause Notices / Statement of Demands which have been now culminated in the Impugned Order. 4. Learned counsel for the petitioner would submit that the issue is squarely covered by the decision of the Hon'ble Supreme Court on merits in Union of India and another Vs. Intercontinental Consultants and Technocrats Private Limited , (2018) 4 SCC 669 wherein the decision of the Division Bench of the Delhi High Court in Intercontinental Consultants and Technocrats Private Limited Vs. Union of India , 2012 SCC OnLine Del 5958 was affirmed by the Hon'ble Supreme Court. 5. That apart, the learned counsel for the petitioner would submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision making process and therefore the Writ Petition is liable to be dismissed as it has no merits. 11. Learned Senior Standing Counsel for the respondents further submits that the petitioner has not substantiated by any document to claim benefit of Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006. It is reproduced below:- 5. Inclusion in or exclusion from value of certain expenditure or costs.- (2) Subject to the provisions of sub-rule (1), the expenditure or costs incurred by the service provider as a pure agent of the recipient of service, shall be excluded from the value of the taxable service if all the following conditions are satisfied, namely:- i. the service provider acts as a pure agent of the recipient of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so procured; and (d) receives only the actual amount incurred to procure such goods or services. Explanation 2.- For the removal of doubts it is clarified that the value of the taxable service is the total amount of consideration consisting of all components of the taxable service and it is immaterial that the details of individual components of the total consideration is indicated separately in the invoice. 12. I have considered the arguments advanced by the learned counsel for the petitioner and the learned Senior Standing Counsel for the respondents. I have also perused the replies filed by the petitioner to the above mentioned Show Cause Notices and the Statement of Demands. 13. The reply although is elaborate, it has not specifically d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, the petitioner shall deposit a sum of Rs. 50,00,000/- to secure the interest of the revenue. 19. The respondents shall pass fresh order on merits within a period of six (6) months from the date of receipt of a copy of this order. 20. The Impugned Order dated 26.10.2021 which stands quashed shall be treated as an addendum / corrigendum to various Show Cause Notices / Statements of Demand issued to the petitioner. 21. The petitioner shall file a consolidated reply together with all the evidences to substantiate that indeed the petitioner had incurred the amounts as a pure agent as per Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006 read with Section 67 of the Finance Act, 1994. 22. All the legal defences that are availa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
