JAYALAXMI ENTERPRISES Vs. COMMISSIONER OF C. EX., MANGALORE

JUDGEMENT

(1.) THE appellants are required to pay Service Tax of Rs. 1,56,919/ - and penalty of Rs. 500/ -. They have already pre -deposited Rs. 34,328/ - as Service Tax and Rs. 22,874/ - as interest. The Revenue has proceeded against the appellants as a C&F Agent on the ground that Service Tax is also leviable on the out of pocket expenses collected by them from their clients.

(2.) THE learned Counsel submits that in terms of Rule 6(8) of the Service Tax Rules 1994, the Service Tax is leviable only on remuneration or commission paid to the C&F Agent by their clients. The out of pocket expenses are not their profit or commission. Hence, the same is not includible in terms of the Rules. They have also discharged the services of Del Credere agent on which also tax is not leviable. The appellants had relied on the ratio of this Bench on Del Credere services being not taxable as rendered in the case of Raja Rajeshwari Intl. Polymers (P) Ltd. v. CCE, Bangalore -III - 2006 (3) S.T.R. 561 (Tribunal) = 2005 (180) E.L.T. 448 (Tri -Bang.). Further the authorities have not granted the relief. The learned Counsel submits that the order is not sustainable, as they have already discharged the Service Tax on the remuneration received by them for rendering the services of C&F agent.

(3.) THE learned JDR defends the order and prays for putting the appellants on terms.