Service Tax cannot be levied on incentive to encourage use of franking machines

M/s. Mail Related Services Vs Commissioner of Service Tax (CESTAT Chennai) It is not disputed that the costs related to franking are paid directly to the Post Master General by the appellant’s clients or are otherwise paid by the appellant and subsequently, reimbursed by the said clients. Therefore, it cannot be alleged that the said charges are accruing to the appellants. Hence, in our view, they cannot be made part of the value of taxable service. Even in cases where the appellants pay the franking cost to the postal department on behalf of their clients, they get reimbursed for the same b...