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2023 (12) TMI 126 - AT - Service TaxLiability of CHA to pay Service tax on various expenses incurred on behalf of their clients - case of the department is that all these expenses incurred during the course of providing CHA service, therefore the same is includible in the gross value of CHA services provided by the appellant - HELD THAT:- As per the provisions of Rule 5 of the Service Tax (Determination of Value) Rules, 2006, the reimbursable expenses also need to be included in the value of taxable services rendered. However, this rule has been held to be ultra-vires to section 67 by 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]. Hence, the demand of Service Tax on this count is clearly not sustainable. In view of the Hon'ble Apex Court judgment in Intercontinental case and the CBIC Circular No. 119/13/2009-ST dated 12.12.2009, the reimbursable expenses incurred by the appellant on behalf of the service recipient is not includible. The demand cannot be sustained. The impugned order is set aside - Appeal allowed.
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