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2022 (1) TMI 316 - CESTAT BANGALORELevy of service tax - Consulting Engineers Services - reimbursement of expenses - export of service or not - HELD THAT:- The amounts incurred by the head office towards the salaries etc. of the employees working in their branches can by no stretch of imagination be equated to any service rendered to them by the respective branches. In the case of M/S. KUSUM HEALTHCARE PVT. LTD. VERSUS C.C.E., ALWAR [2018 (7) TMI 919 - CESTAT NEW DELHI], it was held that the legal fiction created in proviso to Section 66A for consideration of branch as a separate establishment is certainly not for the purposes of demanding service tax on the services alleged to have been rendered by the branch to the head office. In fact, going through the records of the case, it is found that the payments made by the appellants are none other than the recurring expenses like salary, travelling allowance, rent, telephone charge etc. It has not been brought on record if any other payments for any other service alleged to have been rendered were made. The demand on account of reimbursement of expenses to their employees working in the overseas branches does not constitute any remuneration in lieu of a service received by the appellants - the demand on account of services alleged to have been rendered by the overseas branches to the appellant is set aside. Other demand of about ₹ 78 lakh and ₹ 7 lakh - appellant submits that the demand and duty has been paid before the issue of SCN and as such no penalty can be imposed - HELD THAT:- In order to verify the competing claims of the appellant and the Revenue, the matter needs to go back to the original authority for verifying the records and arrive at the actual duty and interest payable. Further, it is found that no penalties can be imposed at this count. The appeal is partly allowed by way of remand
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