JONES LANG LASALLE PROPERTY CONSULTANTS (INDIA) PVT. LTD. Vs. COMMISSIONER OF C. EX. (APPEALS-II), BANGALORE

JUDGEMENT

(1.) THE appellants are required to pre -deposit Rs. 9,77,666/ - and like sum as penalty. They were covered under the Finance Act for payment of Service Tax under the category of Real Estate Agency. The Revenue has proceeded to levy Service Tax in respect of out of pocket expenses/reimbursement and also in respect of payments to be received in foreign currency.

(2.) THE learned Consultant submits that there are tribunal rulings holding that out of pocket expenses cannot be added to the total value of services, as the same is not part of the commission received by them. With regard to the payments to be received in foreign currency, it is his submission that the department has proceeded on the basis of Books of Accounts. The said amounts have not yet been received by them. The Service Tax is leviable only when the amounts have been received in terms of the provisions of Finance Act. Therefore, confirmation of Service Tax on both the items is not justified and he prays for waiver of pre -deposit.

(3.) HEARD the learned JDR who reiterated the departmental view.