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2017 (9) TMI 90 - AT - Service TaxValuation of services - reimbursement of expenses - includibility - appellant is in the business of providing services as "Recovery Agent" to various nationalized banks for the past many years - Held that: - the excludability of any expenses claimed to be reimbursed depends on the facts and circumstances of each case and the terms of the agreement relevant to the said case - In the present appeal, the appellant categorically claimed that in terms of the agreement with client banks, they are incurring various expenses during the course of providing service as recovery agent. These expenses were reimbursed to them on actual basis. This aspect can be verified in terms of the agreement, documents/invoices supporting the claim of the appellant - matter on remand. Time limitation - the period involved is 1.5.2006 to 31.3.2009 and the notice was issued on 8.10.2010 - Held that: - the appellants maintained records of all the expenses and the present demand was based on such records. In such situation, the demand cannot be invoked by alleging willful misstatement, fraud and intention to evade payment of tax - the extended period was invoked on the ground that the information was not disclosed to the Department. When there is a bonafdide doubt based on the interpretation of the legal provisions, the question of suppression and willful misstatement cannot be sustained - appeal allowed. Appeal allowed in part and part matter on remand.
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