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2023 (11) TMI 1129 - AT - Service TaxLevy of service tax - amounts collected as reimbursement of electricity charges - reimbursement of air conditioning charges - invocation of Extended period of Limitation - penalty - HELD THAT:- Reimbursable expenses have been held to be not consideration for service by the High Court of Delhi in case of INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. VERSUS UOI. & ANR. [2012 (12) TMI 150 - DELHI HIGH COURT] - thus, no service tax can be charged on the reimbursable expenses which the appellant had collected towards providing electricity and air conditioning. Invocation of Extended period of Limitation - HELD THAT:- Since the issue decided on merits in favour of the appellant insofar as the demand of service tax on these two expenses is concerned, and since the appellant is not contesting the rest of the demand, the question of invoking extended period of limitation need not be examined. Levy of penalty - HELD THAT:- The appellant had reasonable cause for failure to pay service tax and, therefore, by invoking section 80, the penalties are set aside. The appeal is partly allowed by setting aside the demand of service tax on reimbursable expenses towards electricity and air conditioning collected by the appellant and upholding the rest of the demand with interest.
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