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2021 (12) TMI 242 - AT - Service TaxValuation - inclusion of reimbursable expenses in the gross value of the for determination of the value of taxable service - period involved is upto March 2015 - HELD THAT:- In the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 - SUPREME COURT] referred to by the learned Counsel, Supreme Court while upholding the order of Hon’ble Delhi High Court quashing Rule 5 of Service Tax Valuation Rules, 2006 has held that Realising that Section 67, dealing with valuation of taxable services, does not include reimbursable expenses for providing such service, the Legislature amended by Finance Act, 2015 with effect from May 14, 2015, whereby Clause (a) which deals with ‘consideration’ is suitably amended to include reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service. Thus, only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax. It is found that the issue in respect of the reimbursable expenses has been considered and decided by the Hon’ble Apex Court for the period prior to amendments made in 2015, and we are concerned with same issue for the period prior to 2015, there are no merits in the impugned order. Appeal allowed - decided in favor of appellant.
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