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2017 (3) TMI 118 - AT - Service TaxExtending Corporate guarantee and LC to the respondent - classifiable under the category of Business Support Services or not? - penalty u/s 77 and 78 - Held that: - appellant-assessee could have had bonafide belief as to that the amounts paid for extending corporate guarantee to the Banks may not be a service rendered to the appellant as the banks extended loan facilities to the appellant-assessee - the provisions of Section 73(3) are applicable in this case as also the Section 80 of the Finance Act, 1994 can be applicable in the peculiar facts and circumstances of the case - penalty set aside. Reimbursible expenses - valuation - Held that: - the service tax liability on the amount paid as reimbursable to the professionals will not includable as gross value of services and not taxable under Rule 5(1) and also the Rule 7 of the Service Tax Valuation Rules which categorically rules out the reimbursable expenses. Appeal allowed - decided in favor of appellant.
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