𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗖𝗹𝗲𝗮𝗿𝗶𝗻𝗴 𝗮𝗻𝗱 𝗙𝗼𝗿𝘄𝗮𝗿𝗱𝗶𝗻𝗴 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗮𝗻𝗱 𝗧𝗮𝘅𝗮𝗯𝗹𝗲 𝗩𝗮𝗹𝘂𝗲 📢 The Tribunal held: "If clearing and forwarding services are provided by the same person under separate agreements, freight forwarding charges must be included in the taxable value for C & F services."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s T. Kolandasamy 𝗜𝘀𝘀𝘂𝗲: Whether the appellant was required to include freight charges in the taxable value for Clearing and Forwarding (C & F) services?

𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant provided clearing and forwarding services to Ultra Tech Cements and Zuari Cements. Separate invoices for freight were issued without service tax. A show-cause notice was issued for short payment of service tax.

𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that freight charges should be included in the taxable value for C & F services. However, since Ultra Tech Cement paid service tax under GTA services, the appellant had no intent to evade taxes. The extended period of limitation was not applicable, and the demand and penalties were set aside.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s T. Kolandasamy vs. The Commissioner of Central Excise 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗼. 42202 of 2014 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 14 December 2023

📜 This ruling clarifies that freight forwarding charges must be included in the taxable value for C & F services, but extended period demands are not applicable if no tax evasion intent is found.