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2019 (5) TMI 159 - AT - Service TaxValuation - supply of manpower services - inclusion of amount of salaries and wages paid to the persons in assessable value - Section 67 of the Finance Act, 1994 read with Rule 3 of the Service Tax (Determination of Value) Rules, 2006 - Time Limitation - HELD THAT:- The period involved is from June 2005 to September 2008. The Show Cause Notice has been issued on 12.04.2010 invoking the extended period - Appellant has placed the samples of the invoices raised by them as also the financial statements. The amount received as salaries and wages by the appellant is shown as expenditure and not as income by them. This goes to show that the appellants were under the bona fide belief that these are reimbursable expenses and would not be includible in the taxable value. The issue whether reimbursable expenses are subject to levy of service tax was under litigation and had travelled up to the Hon’ble Apex Court wherein it was settled by the decision in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 - SUPREME COURT OF INDIA] . The Department does not have a case that the appellants did not reflect the amount received by them in the nature of salaries/wages in their account. The Department has failed to establish that the appellants have wilfully suppressed facts with an intention to evade payment of service tax - The appeal succeeds on the ground of limitation.
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