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2018 (11) TMI 1023 - AT - Service TaxLevy of service tax - mobilization advance received - amount received from Indian Navy for the purpose of upgrading their infrastructure at the shipyard so as to facilitate they undertaking future refits for Indian Navy - Held that:- These are not linked to the present contract and hence can only be termed mobilization advances not linked to any signed contract for rendering services. Of course, in future Indian Navy may award the appellant contracts and the amounts now paid will be adjusted against such contracts. At this stage it is not clear as to what contracts will be signed and whether they will be liable to service tax during that period - there is no ground to charge service tax on the mobilization advance received by the appellant - demand set aside. Liability of service tax - Amounts received towards reimbursement of income tax and VAT paid including the TDS paid by the appellant and reimbursed by the Indian Navy - Held that:- These are in the nature of reimbursable expenses and hence cannot be included in the value of taxable services as has been held by the Hon’ble Supreme Court in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. [2018 (3) TMI 357 - SUPREME COURT OF INDIA] - Demand set aside. Liability of service tax - amounts received towards RTDs - Held that:- These are clearly goods received by the appellant on behalf of Indian Navy and were imported by filing a bill of entry and no service tax can be levied on the goods - demand set aside. Appeal allowed - decided in favor of appellant.
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