Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 605 - AT - Service TaxValuation - “expenses” reimbursed by the hotel to the Appellant towards the actual expenses incurred - whether such reimbursable expenses can be subjected to service tax under Section 67 of the Finance Act, by treating the same as part of the ‘gross amount’ charged by the service provider ‘for services provided’ by him? - Held that: - the issue is now dealt with and settled by the judgment of a Division Bench of the Hon’ble High Court of Delhi, in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. vs. UOI [2012 (12) TMI 150 - DELHI HIGH COURT], where it was held that reimbursable expenses cannot form part of the gross value of the services being provided by the service provider. In as much as in the present case the salary of the employees being sent by the appellant to their hotels is being paid by the appellant directly to the employee and the same is being reimbursed by the hotel without any markup. As such in terms of the law declared by the High Court of Delhi such reimbursable expenses collected by the services provider from the service recipient cannot be held to be a part of the value of the services being provided by the appellant - tax not leviable. Extended period of limitation - Held that: - The issue involved is a bonafide issue of interpretation of legal points which were the subject matter of various decisions. As such it cannot be said that there was any suppression or misstatement with any malafide intention to evade duty on the part of the appellant, thus justifying invocation of longer period of limitation - In as much as entire demand is beyond the normal period of limitation we set aside the demand along with penalties imposed on the appellant and set aside the impugned order and allow the appeal on this account also. Appeal allowed - decided in favor of appellant-assessee.
|