9911796707
TMI Blog2013 (12) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... HAs) are raising two sets of invoices over the appellants. One invoice is raised towards the CHA services/Agency charges and the second invoice is raised for the reimbursement of other charges/incurred by the CHA. Commissioner (Appeals) held that appellants are not required to pay any Service Tax on reimbursement of charges/expenses for the period prior to 18/04/2006 are on required to pay Service Tax on such charges after 18/04/2006 with the introduction of the Service Tax (Determination of Value) Rules 2006 for non-fulfilling the conditions laid down under Rule 5 (2) of these Rules. 2. Sh. P.M. Dave (Advocate) appearing on behalf of the appellants argued that amount of reimbursement charges, other than services provided, is not disputed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the value for the purpose of charging service tax goes beyond the mandate of Section 67 merits acceptance. Section 67 as it stood both before 01-05-2006 and after has been set out hereinabove. This section quantifies the charge of service tax provided in Section 66, which is the charging section. Section 67, both before and after 01-05-2006 authorises the determination of the value of the taxable service for the purpose of charging service tax under Section 66 as the gross amount charged by the service provider for such service provider or to be provided by him, in a case where the consideration for the service is money. The underlined words i.e. 'for such service' are important in the setting of Section 66 and 67. The charge of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company. Rule 5 of the Banking Companies Rules, 1949, which were statutory rules, required a banking company to send periodically to the principle office of the Reserve Bank a statement in Form-I showing the remuneration paid during the previous calendar year to officers of the company. In a footnote to the Form, it was stated that remuneration includes salary, house allowance, dearness allowance, bonus, fees and allowances to Directors, etc. The contention was hat Rule 5 enlarged the meaning and content of section 10. The contention was repelled but not on the ground that the rule can validly enlarge the content of the Section, but on the ground that the Section itself used the word remuneration in the widest sense. It was however ackno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e value of the taxable service in such manner as may be prescribed is expressly made subject to the provisions of sub-section (1). The thread which runs through Sections 66, 67 and Section 94, which empowers the Central Government to make rules for carrying out the provisions of Chapter V of the Act is manifest, in the sense that only the service actually provided by the service provider can be valued and assessed to service tax. We are, therefore, undoubtedly of the opinion that Rule 5(1) of the Rules runs counter and is repugnant to Sections 66 and 67 of the Act and to that extent it is ultra vires. It purports to tax not what is due from the service provider under the charging Section, but it seeks to extract something more from him by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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