2021 (11) TMI 660 - CESTAT AHMEDABAD - Service Tax

Head Note / Extract:
Valuation - Business Auxiliary Service - inclusion of Electricity Charges reimbursed to the appellant by the Service Recipient M/s. Gujarat Gas Company Limited for providing the service Namely Business Auxiliary Service in the gross value of output service, or not - HELD THAT:- This issue involving identically placed service provider and the same service recipient M/s. Gujarat Gas Company Limited under the identical contract has been decided by this Tribunal in the case of VV BROTHERS VERSUS C.C.E. & S.T. - SURAT-I [2020 (1) TMI 986 - CESTAT AHMEDABAD] wherein this Tribunal has held that electricity charges reimbursed to the service provider by the service recipient are not includable in gross value of renting of immovable property service. Thus, the electricity charges which is reimbursed on actual basis in terms of the contract is not includible in the gross value of service provided by the appellant to Gujarat Gas Company Limited - appeal allowed - decided in favor of appellant.