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2019 (1) TMI 1302 - AT - Service TaxManagement Consultancy Service - non-payment of service tax - no discussion made out on the merits of the case - Held that:- The learned Commissioner of Service Tax has not discussed the merits of the case in respect of the demand proposed for recovery under the show-cause notice dated 03.04.2009 - Since the appellant specifically did not contest the demand as per the show-cause notice dated 03.04.2009 and accepted its liability, the amount paid by the appellant and appropriated in the impugned order towards the respective liabilities cannot be interfered. Reverse charge mechanism - demand as per the show-cause notice dated 17.03.2009 - Held that:- The appellant was not liable to pay any service tax, as a recipient of taxable service under reverse charge mechanism, in terms of Section 66A of the Act, which was inserted in the statute book only with effect from 18.04.2006. By referring to the statutory amendments and various judgments of Hon'ble Supreme Court, the CBEC vide Circular No. 276/8/2009-CX., 8A dated 26.09.2011 has clarified that service tax liability on any taxable service provided by a non-resident or a person located outside India, to a recipient in India, would arise w.e.f. 18.04.2006, i.e. the date of enactment of Section 66A of the Act. Non-submission of break-up of amount from the total service tax liability cannot be a defensible ground to demand service tax, for which no sanctity was provided in the statute. Valuation - reimbursement of expenses made by the appellant to its over-seas clients in respect of various charges incurred by the latter - Held that:- The law is well settled that under both the un-amended and amended provisions of Section 67 of the Act, gross amount charged by the service provider for providing only such service should be considered as taxable value for payment of service tax. Since reimbursement of expenses cannot qualify as a separate taxable service, such amount should not be included in the gross value for payment of service tax - the impugned order confirming the service tax demand on the appellant on reimbursement of expenses is not legally sustainable. Appeals disposed off.
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