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 857 - AT - Service TaxNon-payment of tax during the period April 2004 to March 2006 - the appellant had collected the service tax component from their customers and not deposited the same with the Government of India - Held that: - The appellant having collected service tax from their customers was duty bound to deposit the same with the Government of India. Having not done so, they have erred on the wrong side of law - the appellant should have been more diligent in depositing the service tax liability collected by them from their clients, having undergone identical investigation from the department. In view of the above we do not find any merits in the arguments put forth by the Learned Counsel that the service tax liability having been discharged, penalties should be set aside. Error in the calculation of tax liability - Held that: - when confronted with investigation the appellants have filed service tax returns and which according to them was correct. But subsequently, after a period of almost two years, they cannot revise the returns stating that they have committed an error in the earlier returns. Service tax liability on the amount received as reimbursements for the food of the employees - Held that: - while conducting the event management, transportation charges, we find from the debit notes that these amounts are collected at actual and there is no markup. The agreements which was produced before us indicate reimbursement of the amounts at actual for the food and other expenses incurred by the appellant for conducting the event management - the issue now stands squarely covered by the decision of the Hon'ble High Court of Delhi in the case of Intercontinental Consultants & Technocrats Pvt. Ltd [2012 (12) TMI 150 - DELHI HIGH COURT], where it was held that expenditure or costs incurred by the service provider in the course of providing the taxable service can never be considered as part of gross amount charged by the service provider for the service provided and reimbursement of expenditure for air travel, hotel stay, etc. may also lead to double taxation - Accordingly, we set aside the demand of service tax liability along with interest thereof and the amount of penalty imposed on them on this issue. Appeal disposed off - decided partly in favor of appellant.
|