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2019 (6) TMI 1539 - AT - Service TaxLevy of service tax - advertising services - expenses on behalf of its customers in the nature of travel, lodging, etc. which were later reimbursed to the Appellant on cost to cost basis without adding any mark-up - period from 2004 to 2006 - HELD THAT:- The contract executed by the Appellant with its customers specifically state that all out-of-pocket and other commercial expenses shall be reimbursed to the Appellant on actuals. Further, the Revenue has not disputed the fact that such amounts were being received by the Appellant without any mark-up. Reliance placed in the case of the Hon’ble Supreme 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], wherein it has been held that service tax on expenditures incurred by the service provider in the course of providing taxable service is ultra vires Section 67 of the Finance Act and that such expenditure cannot be considered for charging service tax. The Trade Notice relied upon by the Revenue was never incorporated in the Finance Act by way of an amendment. Therefore, in the absence of any statutory backing, the Revenue cannot demand tax relying solely upon a Trade Notice or Circular issued by the Department itself - Demand set aside - appeal allowed - decided in favor of appellant.
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