𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗥𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗮𝗯𝗹𝗲 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: “It is settled position that reimbursable expenses, such as transportation charges, terminal handling charges, demurrage charges, documentation charges, etc., collected from the customer by the Appellant, are not subject to levy of Service Tax.”

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. United India Shipping Services 𝗜𝘀𝘀𝘂𝗲: The Appellant, providing CHA services, collected various charges like LCL, deconsolidation, transportation, and demurrage charges, which were claimed as reimbursable expenses and excluded from taxable value. A 2009 show cause notice proposed service tax on these charges, leading to confirmation of tax, interest, and penalties.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that charges collected by the appellant from clients and passed on to third-party providers are reimbursable expenses, not subject to service tax. Citing the Supreme Court's decision in Union of India vs. Intercontinental Consultants and Technocrats Ltd., the Tribunal set aside the service tax demand and allowed the appeal.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. United India Shipping Services vs. Commissioner of GST & Central Excise 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 42191 of 2015 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 12 June 2023 📜 This ruling confirms that reimbursable expenses such as transportation and handling charges collected by the service provider are not subject to service tax.