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2023 (9) TMI 236 - AT - Service TaxDemand of interest on the advance returned by the appellant in respect of “Metro Zone” Project - HELD THAT:- The adjudicating authority has categorically held that there is no tax liability on the advance amount of Rs.85 crores received by the appellant and returned thereafter. However, the adjudicating authority has proceeded to confirm the demand of interest on such Service Tax - It cannot be understood how the liability of interest would arise when there is no liability to Service Tax. Hence, the same is required to be set aside, which we hereby do. Demand on reimbursable expenses - HELD THAT:- The issue as to whether demand of Service Tax can be made on reimbursable expenditure has been settled by the Hon’ble Apex 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]. Following the same, the demand cannot sustain and requires to be set aside. The demand of interest on the advance (of Rs.85 crores) received by the appellant and returned thereafter, as confirmed in paragraph 14.1 of the impugned order, cannot sustain and requires to be set aside - the demand of Service Tax on the reimbursable expenses, as discussed in paragraph 17 of the impugned order requires to be set aside - penalties imposed in respect of these two demands are set aside. Appeal allowed in part.
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