Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2012 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 119 - AT - Service TaxService tax demand on the entire bill value amount without allowing a deduction for the reimbursement expenses - Ld. Commissioner disallowed the claim as the appellants have not produced the supporting documents evidencing the claim whereas the contention of assessee is that now they are in a position to produce the requisite documents - Held that:- In light of the judgment of the case of Sri Bhagavathy Traders Vs. Commissioner of Central Excise, Cochin [2011 (8) TMI 430 (Tri)] wherein guidelines have been laid down how to compute the expenses defines that only when the service recipient has an obligation legal or contractual to pay certain amount to any third party and the said amount is paid by the service provider on behalf of the service recipient, the question of reimbursing the expenses incurred on behalf of the recipient shall arise - the claim for reimbursement towards rent for premises, telephone charges, stationery charges, etc. amounts to a claim by the service provider that they can render such services in vacuum - what are costs for inputs services and inputs used in rendering services cannot be treated as reimbursable costs as there is no justification or legal authority to artificially split the cost towards providing services partly as cost of services and the rest as reimbursable expenses - the aforesaid decision was not before the ld. Commissioner while passing the Order, the case is remanded to the Ld. Commissioner to decide afresh.
|