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2010 (12) TMI 410 - AT - Service TaxValuation - Reimbursement of expenditure - charges for infrastructure i.e. godown rent, depreciation, pest control, fire extinguisher, internet, house keeping and staff welfare, telephone expenses, courier expenses, tax, electricity including generator expenses, samples and promotion materials handling charges, commission paid to bank, renewal of licences, stationery remuneration paid to staff and loading and unloading expenses were subject matter of consideration - The basic principle that service tax being destination based consumption tax, till the service reaches its destination, that contributes to the proposition that all expenses incurred till that point and time become essential consideration of cost of service - Agreement of parties in respect of modality of payment of valuable consideration towards service provided does not matter for Revenue - Legislature accordingly intend that the gross value of the service shall be the measure of value for taxation whether paid as consideration directly or by reimbursement of expenses relating to providing of taxable service - There is no specific deduction allowed under statutory provisions to diminish the value of taxable consideration of taxable service, in absence of such provision in law, learned Commissioner (Appeals) committed error of law to exclude the expenses reimbursed by the service recipient to service provider from the purview of taxation.
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