P.K Das:— All these appeals are arising out of a common Order in Appeal Nos. 119 to 122 (GRM)ST/JPR-I/2006 dated 22.12.2006 passed by Commissioner (Appeals), Jaipur.
2. The issue involved in these appeals is as to whether the amount paid by the appellant to the club agents in the name of club expenses and gratuity have to be included in the gross value of taxable service.
3. After hearing both sides and on perusal of the impugned order, we find that the Commissioner (Appeals) observed that the appellant has not submitted documentary evidence or otherwise evidence to show that the amount paid by them to their agents to reimburse the expenses incurred on account of travelling, boarding or lodging. Learned Advocate relied upon the Board Circular F. No. 246/01/2002-CX-4 dated 9.2.2004 The relevant portion of the said Circular is reproduced below:
“4. With regard to allowances and reimbursements paid to the agents, the position has been clarified in Board's Circular F. No. B-11-1/2001-TRU dated 9.7.2001 that out of pocket expenses which are reimbursable on actual basis such as travelling, boarding and lodging will not be subject to service tax providd all the conditions mentioned in the Circular are satisfied. Accordingly, your stand with regard to allowances and reimbursement paid to the agents is acceptable.”
4. Learned Advocate has not been disputing that the appellants are required to submit evidences of the pocket expenses which are reimbursable on actual basis. He fairly submits that opportunity may be given to them to produce on record on this issue. In addition to that the learned Advocate submits that the adjudicating authority confirmed the demand of tax in respect of Appeal No. ST/153/07 related to payment of gratuity to the agents. He submits that the original authority did not consider that such payment was under Welfare Scheme of LIC. He also submits that Commissioner (Appeals) had not given any finding on this issue.
5. We find that to meet the ends of justice, the appellants should be given an opportunity to produce evidence in terms of the Board's Circular. In view of that, we set aside the impugned order and the matter is remanded back to the adjudicating authority to consider the submission of the ld. Advocate on payment of gratuity and to examine evidence in respect of pocket expenses which are reimbursable on actual basis as stated in the Board Circular dated 9.2.2004
6. All the appeals are allowed by way of remand.