COMMISSIONER OF CENTRAL EXCISE Vs. ANKUSHIS ENTERPRISES

JUDGEMENT

(1.) REVENUE being aggrieved by the first appellate order reversing adjudication order has come in appeal on the ground that reimbursement of expenses shall form part of assessable value of the taxable service namely clearing and forwarding services. Today, there is neither cross -appeal of the respondents nor any cross -objection of assessee before us. Shri Amrish Jain, ld. DR submits that dispute in the present appeal has already been settled by the Tribunal in the case of Naresh Kumar & Co. Pvt. Ltd. v. Commissioner reported in : 2008 (11) S.T.R. 578 (Tribunal) and also in the case of CCE, Chandigarh v. Team S & S reported in : 2011 (21) S.T.R. 290 (Tri. -Del.). Once the expenditure reimbursed are intimately connected to the service provided and no taxable service is performable without incurring such expenses, that forms part of assessable value of the taxable services. Ld. DR also submits that original authority has examined the case carefully and passed the appropriate order.

(2.) HEARD both sides and perused the records.

(3.) IN absence of cross -appeal or cross -objections by the respondent, the respondent has no new ground for argument of its case. It had challenged the adjudication order on three counts as appeared from page 2 of the impugned order. The first appellate authority granted relief to respondent in respect of clearing and forwarding services provided excluding reimbursed expenses from assessable value while law requires inclusion of assessable value to the gross receipt from provision of clearing and forwarding services. We are in full agreement with the Revenue and direct that the appellate order should be reversed to impose service tax liability on the respondent to the tune that was imposed by the adjudication order.