TMI Blog2006 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... e contract is for rendering various services which are mentioned in Appendix 'A' to the agreement. The appellants received gross amount of Rs. 30,02,26,393/- from the client in local currency and foreign currency for the period from 1-3-99 to 31-3- 2004. Its split up is as under:- (a) Rs. 22,15,54,047 - in local currency (b) Rs. 7,86,72,346/- in foreign currency The appellants, who registered themselves under the category of 'Consulting Engineer Services' paid a Service Tax of Rs. 43,21,264/- for the relevant period. The case of the Revenue is that the appellants were required to pay service tax on the gross receipts of amount to the tune of Rs. 1,57,03,274/- received form the client. Hence proceedings were initiate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od could not be invoked against the appellants. Thus the demand is time barred. (ii) The demand confirmed in the impugned order represents value of the services which are not taxable and also the expenditure reimbursed by the customer and also the amount received in foreign exchange on which full exemption under Notification No. 6/99-ST was available. (iii) The learned Advocate relied on the Apex Court decision in the case of Calcutta Discount Company v. ITO [1961 (41) ITR 191 (S.C.)] wherein it was held that as long as primary facts are within the knowledge of the Department, an assessee is under no obligation to disclose inferential facts or legal inferences which may be drawn from such primary fact (v) The ST-3 Return were duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consulting services for construction supervision, (i) Other host of related services, (ii) Road Maintenance Management study The above services were brought under the service tax net only with effect from 16-6-2005 under the new service category of survey and map making and/or site formation and clearance, excavation earth moving and demolition services. (viii) As per DGST Circular, service tax cannot be levied on the expenses reimbursed by the claimant. Reliance is placed on the Tribunal decision in the case of Glaxo Smithkline Beecham Pvt. Ltd. v. CCE [ 2006(3) S.T.R. 711 (Tri.) = 2005(188) E.L.T. 171 (Tri.-Mum.)] (ix) The value received in foreign exchange is not liable to service tax in view of the exemption under Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one is taken a major portion of the demand would be hit by time bar. 7. We are convinced that the appellants had not only rendered 'Consultancy Engineering Services' but also various other services which have already been enumerated.For Example, by no stretch of imagination, socio economic study would be termed as Consulting Services.Therefore demanding tax on the gross receipts is not correct. The Chartered Accountant has certified that the appellants have received a sum of Rs. 17,42,05,551/- in local currency for the various services rendered. Further, the amount received in foreign exchange amounts to $16,15,662/-.The DGST vide their clarification of October 2003 has stated that the reimbursable/out of pocket expenses char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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