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2019 (4) TMI 1268 - AT - Service TaxValuation - Market Research Agency Service - inclusion of amount recovered under “Actuals” in the consideration for payment of service tax - HELD THAT:- This amount was received for hiring of hotel rooms, gift, purchasing product samples etc.; These amounts have been claimed from customers on “actuals” duly supported by vouchers. The question whether such reimbursable expenses should form part of the taxable value has been decided by the Hon’ble Supreme Court in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 - SUPREME COURT OF INDIA] where it was held that the value of taxable services in terms of Section 67 does not include reimbursable expenses for providing such service until May, 2014-15, when Section 67 was suitably amended to make provision for the same - the demand for service tax made on this ground is set aside. Demand for service tax on amounts received from foreign clients - N/N. 6/99 (ibid) - HELD THAT:- It is not in dispute that the appellant has received payment for services provided to foreign clients either in foreign exchange or in Indian Rupees (for Nepal customer). Evidently, the payment for taxable services provided to foreign clients have been received and such amounts cannot be charged to service tax, since they are in the nature of “Export of Services”. It is on record that the appellant has made certain remittances in foreign currency for purchase of software licences and other expenses connected with providing services to foreign clients. We are of the view that such remittances will not incur the mischief of the proviso in Notification Nos.6/99 & 21/03 - In any case, the appellant was fully entitled to make remittances in foreign exchange outside the country for legitimate business expenses as permitted by RBI from time to time. In the result, we find no justification to order payment of service tax on the export proceeds. CENVAT Credit - duty paying documents - credit is denied for the reason that this has been availed on the basis of photo copies of the original documents - HELD THAT:- There are no allegations have been made by the Revenue of any fraud or mis-use. No doubts have been cast on the authenticity of the photo copies based on which credit have been availed - there is no reason to deny the cenvat credit on such flimsy grounds. Appeal allowed - decided in favor of appellant.
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