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2019 (7) TMI 1801 - AT - Service TaxLevy of service tax - pure agent services or not - technical inspection and certification service - commercial training and coaching service - validity of rule 5 (1) of Service Tax (Determination of Value) Rules, 2006 - ultra vires of the provisions of section 67 of Finance Act, 1994 or not - HELD THAT:- It is seen from the impugned order that the adjudicating authority has confirmed the demand on the finding that the agreement referred to in rule 5(2) of Service Tax (Determination of Value) Rules, 2006 is not available and that the impugned expenditure were incurred for effective provision of service. The proposal in the show cause notice, and the non-acceptance of claim to be ‘pure agent’, as envisaged in rule 5(2) of Service Tax (Determination of Value) Rules, 2006 which serves to qualify exclusion from rule 5 (1) of the said Rules were based on the prescriptions that have been judicially erased. It is seen that rule 5(1) of the said Rules is a deeming provision for enhancement of the taxable value by including expenditure incurred for providing taxable service but charged separately, and not as consideration, from the recipient of service. The expenses that are under dispute were charged, and collected, independent of the consideration, from the recipient of service. Other than referring to the inclusions mandated by rule 5(1) of Service Tax (Determination of Value) Rules, 2006, there are no evaluation of the several expenditures as being indispensable for rendering of the service by the appellant - appeal allowed - decided in favor of appellant.
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