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2017 (4) TMI 100 - AT - Service TaxValuation - reimbursable expenses to be included in gross value or not? - Held that: - The law provides that for the purpose of calculating the service tax gross value of service has to be taken in to account. This includes the consideration received before, during or after the service. The costs of expenditure or the amount reimbursed to the clients are not allowed to be deducted or excluded except in the case of pure agent - Admittedly, appellants are no pure agents and Commissioner (Appeals) has also given finding that appellants did not claim themselves to be a pure agent nor did they produce any evidence for fulfillment of conditions necessary for being a pure agent - Section 67 is clear and unambiguous that all the expenses incurred in relation to rendition of service have to be included in the gross taxable value. The extended period has been correctly imposed as the law was clear and unambiguous. Non-inclusion of part of taxable value in such a situation is a positive act of suppression and misdeclaration of value in their ST-3 returns - penalty also rightly imposed. Appeal dismissed - decided against assessee.
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