9911796707
TMI Blog2022 (11) TMI 1544X X X X Extracts X X X X X X X X Extracts X X X X ..... iding output services, the appellant had incurred certain expenditure viz. Custom Duty, Octroi Duty, Warehousing Charges, etc., on behalf of its customers. Such expenditure is incurred under express instructions from the customers and is recovered on actual basis by way of reimbursement from the customers. Since, the appellant did not pay service tax on such reimbursable expenses incurred by them, the department-initiated show cause proceedings, seeking recovery of the service tax amount along with interest and for imposition of penalties. The matter arising out of the show cause notices was adjudicated upon by the learned Commissioner of Service Tax, Mumbai - VII vide the impugned order dated 02.01.2017, wherein the proposed demands in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of charging service tax on the said service. Sub-rule (2) of Rule 5 ibid has provided that the expenditure or costs incurred by the service provider as a pure agent of the recipient of the service, shall be excluded from the value of the taxable service, upon fulfillment of the conditions itemized therein. 4. On perusal of the case records, we find that the learned adjudicating authority has included various costs and expenditure incurred by the appellant for provision of the taxable service, for the purpose of determination of the value of service and for payment of service tax thereon. At paragraph 14 in the impugned order, the learned adjudicating authority has held that the notice (appellant herein) does not qualify to be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imbursement of various expenses and for service/agency charges separately, the invoice issued for service/agency charges alone is to be used for payment of service tax. 6. We find that relying upon the aforementioned judgments delivered by the Hon'ble Delhi High Court and Hon'ble Supreme Court, the department in appellant's own case has dropped the proposed demands made in the show cause notices for the subsequent period. Thus, under the facts and circumstances of the case, we do not find any reason to uphold the impugned order passed by the learned adjudicating authority. 7. Therefore, we do not find any merits in the impugned order, insofar as it has confirmed the adjudged demands on the appellant. Accordingly, the impugned order is set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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