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2019 (3) TMI 189 - AT - Service TaxValuation - inclusion of reimbursement expenses in assessable value - payment made by the respondent to M/s. Morarji international, Italy on account of reimbursement of charges made by the said Morarji international in the year 2006-07 towards staff cost, insurance, travelling, conveyance, communication etc. - Held that:- The issue is no longer res Integra - the issue has been decided by the Hon’ble Supreme Court and Delhi High Court in the case of Inter- Continental Consultants and Technocrats Pvt. Ltd. [2012 (12) TMI 150 - DELHI HIGH COURT] - Hon’ble Supreme Court [2018 (3) TMI 357 - SUPREME COURT OF INDIA] has categorically held that service tax is to be paid only on the services actually provided by the service provider. There is no dispute, as regards the excludability of reimbursement expenses from the service tax - However, in the instant case the original authority has given a finding that the respondent did not give any bifurcation or prove that these expenses were relating to reimbursement of expenses made by the respondent to their international company in Italy. Allegation was that the balance sheet for the year 2006-07 has shown a lump sum amount of payment by the respondent to their sister concern. No bifurcation was showed - it will be in the interest of justice that the matter goes back to the original authority to calculate the quantum of such payments and deduct them from the amounts on which service tax is payable - appeal allowed by way of remand.
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