TMI Blog2014 (1) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived in India in convertible foreign exchange. During the period 1.3.2003 to 20.11.2003 there is no exemption in respect of export of service. The applicant relied upon the Board's Circular. We find that Section 93 of the Finance Act, provides that if the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax leviable thereon. Appellant has provided taxable service to the Foreign Service recipient in respect of advertisement which is displayed in India. Therefore the appellants ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t show-cause notices were issued for including the value of reimbursable expenses towards the assessable value of taxable service. The main contention of the appellant is that the issue whether the reimbursable expenses are to be included in the assessable value of taxable service rendered is now settled by the decision of the Larger Bench in the case of Sri Bhagvathy Traders vs. CCE as reported in 2011 (24) STR 290 (Tri. LB). Earlier to this, there were divergent views on the issue. Therefore in view of the decision of the Tribunal and the CBEC's instruction, the appellant was in bonafide belief that the reimbursable expenses are not to be included in the assessable value. Therefore the appellant submitted that the demand is not sustainabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ger Bench of the Tribunal specifically decided the issue on includibility or otherwise of the reimbursement charges received by a provider of taxable service in calculation of gross amount for discharge of service tax. The Tribunal after taking into consideration the earlier decisions held as under: "What are the cost of the input services and input used in rendering services cannot be treated as reimbursable. There is no justification or legal authority to artificially split the cost towards providing services partly as cost of services and the rest as reimbursable expenses." The contention is that during the period 1.3.2003 to 19.11.2003 there was no exemption/Notification. The contention of the Revenue is that the applicant had pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicant relied upon the Board's Circular. We find that Section 93 of the Finance Act, provides that if the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax leviable thereon. Therefore we find that there is no merit in the contention of the appellant but as per Board's Circular the export services are exempted in absence of any notification issued under section 93 of the Act. Further we find that in the present case the appellant has provided taxable service to the Foreign S ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
