Venkateshwara Carrying Agencies vs Commissioner Of Central Tax Hyderabad � II

R. Muralidhar, Member (J)

The Department has issued Show Cause Notice to the Appellant on the ground that as the Clearing & Forwarding Agent (C & F Agent) of My Home Industries Ltd., the Appellants were getting the following charges with their principals:

Loading Charges Rs. 30/-

Unloading Charges Rs. 30/-

Service Commission Rs. 10/-

The Department issued Show Cause Notice on the ground that the Appellant is required to pay Service Tax on the entire amount of Rs. 70/- received under the above heads. After due process the Lower Authorities confirmed the demands. Being aggrieved, the Appellant is before the Tribunal.

Learned Consultant submits that loading charges and unloading charges are basically incurred by the Appellant and subsequently they are reimbursed by the Principal. The Agreement entered into with the Principal and reimbursable invoices raised by them on the Principal would clarify this issue. He relies on the case law of Union of India & ANR Vs M/s InterContinental Consultants & Technocrats Pvt Ltd., [2018 (3) TMI 357 - SC] and submits that the confirmed demands are required to be set aside.

Learned AR submits that the Adjudicating Authority at para 26 of the Order-in-Original has clearly recorded the fact that the Appellant has not brought in any evidence indicating that the amounts received from My Home Industries Ltd., were on account of reimbursement only. Therefore, he justifies the demand confirmed since entire amount was received as consideration by the Appellant. Accordingly, he submits that the appeal is required to be dismissed.

Heard both sides. The Appellant claims that their agreement with My Home Industries Ltd., specifies that they would be reimbursing the loading and unloading charges. He further submits that the invoices raised by them towards loading and unloading charges are purely on account of reimbursement. I feel that in the interest of justice, the Appellant should be given an opportunity to produce all the relevant documents before the Adjudicating Authority to canvass these submissions. Accordingly, I remand the matter to the Adjudicating Authority.

He will follow the principles of natural justice and give an opportunity to the Appellant to present all the documentary evidence in respect of their submissions and pass a considered decision within 4 months from the date of receipt of this order. Appeal disposed off thus.