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2014 (12) TMI 503 - AT - Service TaxWaiver of pre-deposit - Rule 5(1) of Service Tax Valuation Rules - Re-imbursement of expenses in the value of taxable services for the purposes of levy of service tax - Whether the appellant is required to discharge Service Tax liability on an amount collected by them from the customers as to they being actual reimbursable expenses - Held that:- valuation of the service provided by the appellant needs to be ascertained based upon the provisions of Section 66 & 67 of Finance Act, 1994 and if such taxable amount is not ascertainable, then the recourse has to be taken as per the provisions of Rule 5(1) of Service Tax Valuation Rules. In the case in hand, this is the precise issue. Hon'ble High Court of Delhi in the case of M/s Intercontinental Consultants & Technocrafts Pvt.Ltd. [2012 (12) TMI 150 - DELHI HIGH COURT] has struck down the said provision of Rule 5(1) of the Service Tax Valuation Rules which would indicate that there is no provision available with the Department as of now to re-work out or re-determine the value of the taxable service. Appellant has made out a prima facie case for waiver of the pre-deposit of the amounts involved. Accordingly, application for waiver of pre-deposit of amounts involved is allowed and recovery thereof stayed till the disposal of appeal. - Stay grantd.
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