SAI SHIPPING SERVICES Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE Appellant is a registered service tax provider under the category of Customs House Agent. The dispute in the present appeal relates to the value of their services to be taxed during the period 2000 to 2005. A show cause notice dated 6 -10 -05 was issued to them proposing to confirmed the demand of Rs. 36,20,863/ - on the ground that the service tax is to be levied on the entire gross value charged by the Appellants from their customers without giving deduction on account of reimbursable expenses incurred by the CHA. However, as during adjudication, the Appellant could produce evidence showing the actual expenses undertake by them on behalf of their client, the adjudicating authority, granted the relief to that extent. As the documentary evidence for the balance years could not be produced by the Appellants, having been lost by them, the demand to the tune of Rs. 24,18,925/ -was confirmed along with confirmation of interest and imposition of penalty of Rs. 10 lakhs under Section 78 of the Finance Act, 1994. In addition, penalty at the rate of Rs. 100/ - per day under Section 76 of the Act was also imposed. The said order of the Assistant Commissioner was impugned by the Appellants before the Commissioner (Appeals).

(2.) IN a parallel set of proceedings, the Commissioner reviewed the order of the Assistant Commissioner and issued a show cause notice for enhancing of the penalty under Section 78. The said show cause notice culminated into an order passed by the Commissioner enhancing the penalty from Rs. 10 lakhs to Rs. 24,28,925/ -. The said order of the Commissioner is also impugned before us.

(3.) THE learned Advocate appearing on behalf of the Appellants draws our attention to Board Circular No. B/43/1/97 - TRU, dated 6 -6 -1997. In terms of the said Circular, the service tax in relation to the Customs House Agent is required to be charged for the services provided by him and as the charges reflected in the invoice," Agency Commission, Charges, Agency and Attendance Charges, Agency Charges and some similar other descriptions." It stands clarified in the Board Circular the service tax shall be computed only with reference to such charges. And the payment could not statutory levies made by the CHA on behalf of their claim and taxes at all reimbursable expenses incurred by them are not to be included for computing the service tax.