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2019 (6) TMI 1496 - CESTAT HYDERABADClearing and Forwarding Agents services - non-inclusion of certain expenses in the total taxable value while discharging service tax liability - period 2005-06 to 2009-10, and April 2010 to March 2011 - HELD THAT:- The demand is raised on the expenses which are reimbursed by the principal to the appellant herein. It is undisputed that the appellants have discharged service tax on the entire commission received by them. Apart from such commission, they are also receiving amounts in the nature of reimbursement of expenses. Such amount is not in the nature of consideration for any services provided by the appellant. These are the expenses incurred by the appellant and have been reimbursed by the principal pursuant to the agreement. Such reimbursable expenses cannot form part of the assessable value during the relevant period because service tax can only be levied on the gross amount charged for rendering services as has been held by the Hon’ble Apex Court in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 - SUPREME COURT]. In the present case, the show-cause notice clearly indicates that the disputed amounts are reimbursable expenses, therefore no service tax can be levied on such reimbursable expenses. In view of the above, the impugned orders are not sustainable and need to be set aside - Appeal allowed - decided in favor of appellant.
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