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2015 (6) TMI 958 - AT - Service TaxBanking and financial services - valuation - inclusion of reimbursement of expenses - appellant contends that postage and telegraph and courier services are engaged by them for correspondence and they only claim the actual amount which has been paid by them to this service provider and also pay service tax to the service provider - Held that:- Impugned order as well as the Adjudicating Authority's order seeks to rely upon Rule 5(i) of the Service Tax (Determination of Value) Rules, 2006 to include this amount as a taxable amount as a consideration for the services under the provisions of Section 67 of the Finance Act, 1994. This very identical issue of discharge of service tax liability of the reimbursement of the actual expenses was considered by the Hon'ble High Court of Delhi in Intercontinental Consultants & Technocrats P. Ltd. [2012 (12) TMI 150 - DELHI HIGH COURT] wherein the Lordship had struck down Rule 5(i) of Service Tax (Determination of Value) Rules, 2006 holding that these provisions are ultra vires of Section 67 of the Finance Act, 1994. - Since the provisions on which reliance was placed to confirm the service tax liability have been struck down, we do not find any merits in the arguments put forth by the ld. Departmental Representative. The impugned order is unsustainable and is liable to be set aside - Decided in favour of assessee.
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