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2023 (8) TMI 613 - CESTAT ALLAHABADValuation of services - pure agent services - getting certain reimbursements on account of salaries paid to their employees engaged in the work of recovery during the period 01.04.2010 to 10.07.2014 - inclusion in taxable value or not - period prior to amendment of Section 67 and Rule 5 - non-production of evidence in support of the claim to be Pure Agent of the recipient of service - section 67 of the Finance Act, 1994 - HELD THAT:- Issue in regards to levy of service tax on the reimbursement expenses prior to amendment of Section 67 and Rule 5 has been considered 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] while deciding the Appeal filed by revenue challenging the order of Hon’ble High Court of Delhi in INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. VERSUS UOI. & ANR. [2012 (12) TMI 150 - DELHI HIGH COURT], referred to by in the order of CESTAT. Hon’ble Supreme Court while upholding the order of Hon’ble Delhi Court has observed only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax. In view of the above decision of the Hon’ble Supreme Court for the period prior to 2015 the demand or service tax in respect of reimbursable expenses cannot be sustained - the same is set aside, demand and penalties imposed on the appellant are also set aside. Appeal disposed off.
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