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2017 (8) TMI 549 - AT - Service TaxEvent Management Service - pure agent service - The case of the department is that the appellant are collecting additional amount on account of various expenses in the name of reimbursement of certain expenses and claimed the said reimbursement is not liable to service tax - whether reimbursement recovered by the assesee from their clients, which is over and above the service charge is liable to be charged service tax or otherwise? - Held that: - In the case of Sri Bhagavathy Traders [2011 (8) TMI 430 - CESTAT, BANGALORE], the Larger Bench observed that the claim for reimbursement towards rent for premises, telephone charges, stationery charges, etc. amounts to a claim by the service provider that they can render such services in vacuum. What are costs for inputs services and inputs used in rendering services cannot be treated as reimbursable costs. The input service and expenses are necessary for providing the service, therefore the same cannot be claimed as reimbursement. The issue of reimbursement can be decided on case to case basis depending upon the nature of output service and the input service, input and other expenses required for providing the service. Matter remanded to the adjudicating authority for passing a fresh order after affording sufficient opportunities of personal hearing to the appellant - appeal allowed by way of remand.
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