The CESTAT, an Appellate Tribunal, ruled on a valuation issue ...

CESTAT ruled charges collected by appellant as pure agents not liable for service tax. No evidence against reimbursable expenses.

Case Laws     Service Tax

June 13, 2024

The CESTAT, an Appellate Tribunal, ruled on a valuation issue regarding the inclusion of reimbursable amounts in addition to charges collected for a service. The appellant had specific agreements with clients classifying charges as pure agency services. The adjudicating authority certified the charges as pure agents based on a Chartered Accountants Certificate. The department failed to provide evidence against the reimbursement being for pure agency services. The Chartered Accountants Certificate confirmed the reimbursement as collected by the appellant as pure agents. The review raised concerns about cross-verification of the certificate with primary documents. The Tribunal found no reason to doubt the certificate's genuineness and upheld the dropped demand. The appeal was dismissed, affirming the adjudicating authority's decision.

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