CESTAT, NEW DELHI BENCH
Commissioner of Central Excise, Indore
v/s.
International Logistics
FINAL ORDER NO. ST/A/220 OF 2012-CUS.
APPEAL NO. ST/376 OF 2007
FEBRUARY 9, 2012
ORDER
D.N. Panda, Judicial Member
Revenue came in appeal being aggrieved by the First Appellate Order holding that the services of supply of manpower and security services involving reimbursement of expenses shall not form part of the assessable value in respect of taxable services of clearing and forwarding service provided by the appellant.
2. Ld. Representative for the Revenue submits that the expenses which are essentially required and integrally connected with the service of clearing and forwarding and can not be disintegrated to make the services performable that shall not be excluded while determining taxable service. Decision of Adjudicating Authority was ruled out by the First Appellate Authority for no good reason. Therefore, adjudication order may be restored.
3. Shri R. Nair, Id. Representative for the assessee submits that the law is clear about no inclusion of expenses to the assessable value. Therefore, the respondent did not include the expenditure incurred for manpower and security services provided. It was grievance of the respondent before the Appellate Authority that in case adjudication is upheld, the respondent is entitled to the benefit of Cenvat credit. That was specifically pleaded in paragraph (viii) of the First Appellate Order because the Appellate Authority allowed the appeal in toto. That particular point was not specifically dealt by the order appealed. It was also submitted by the respondent that it had filed respective balance sheets and returns before the authorities and there was no suppression made. Therefore, penalty cannot be imposed when the law was in a debatable stage.
