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2019 (1) TMI 715 - AT - Service TaxValuation - Liability of service tax - reimbursement received from the customers on account of E.S.I./P.F./W.C.P - Manpower Recruitment and Supply Agency Service - Held that:- Hon’ble Delhi High Court in the case of M/s Intercontinental Consultants & Technocrats Pvt. Ltd. [2012 (12) TMI 150 - DELHI HIGH COURT] has held Rule 5 (1) of the Rules as running counter and repugnant to Section 66 & 67 of the Act and to that extent the same has been held as ultra-vires. The Hon’ble High Court observed that it purports to tax not what is due from the service provider under the charging Section, but seeks to extract something more from him by including in the valuation of the taxable service the other expenditure and costs which are incurred by the service provider. Inasmuch as the issue stands settled that reimbursable expenses cannot form part of the gross value of the services being provided by the service provider, we find no reasons to include the E.S.I./P.F./W.C.P. amount in the assessable value of the services, inasmuch as the same are admittedly reimbursable to the persons concerned. Appeal allowed - decided in favor of appellant.
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