TMI Blog2016 (12) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... ne identical investigation from the department. In view of the above we do not find any merits in the arguments put forth by the Learned Counsel that the service tax liability having been discharged, penalties should be set aside. Error in the calculation of tax liability - Held that: - when confronted with investigation the appellants have filed service tax returns and which according to them was correct. But subsequently, after a period of almost two years, they cannot revise the returns stating that they have committed an error in the earlier returns. Service tax liability on the amount received as reimbursements for the food of the employees - Held that: - while conducting the event management, transportation charges, we find fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at falls for consideration in this case is that the appellant herein, during the period April 2004 to March 2006 had not filed any returns with the department. Based on initiation of investigation, ST-3 returns for the period was filed by them. During the course of investigation, the appellant paid the service tax liability for the period. Further investigation was conducted and statements of various individuals were recorded. Based upon such statements and the facts of the case, the show cause notice dated 22/10/2008 was issued demanding service tax liability. which was collected and not paid, service tax liability on the amounts not included in the valuation in respect of event management service and whether appellant is liable for penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand has been wrongly raised. He draws our attention to the various debit notes raised by them and submits that it was for the reimbursement of food consumed by the appellant's employees at the site, delivery of the documents, actual courier expenses, photocopying cost at actual, actual expenses for development of photographs, use of conveyance, etc. It is his submission that the law is now settled by the judgment of the Hon'ble High Court of Delhi in the case of Intercontinental Consultants Technocrats Pvt Ltd v. Union of India 2013 (29) STR 9 (Del.) wherein the Hon'ble High Court has held that expenditure or costs incurred by the service provider in the course of providing the taxable service can never be considered as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther hand, would submit that appellant collected the service tax component from their clients and did not pay to the government. Hence the demands are rightly confirmed. It is his submission that facing financial hardship does not mean that they should collect the service tax and not deposit with the Government of India. It his submission that the taxes were collected as per the returns filed by them and hence they cannot now turn around and say that the revised returns to be considered. He would submit that the revised returns have been filed beyond the period as prescribed in the provisions of Rule 7C of the Service Tax Rules. He would submit that the appellant is habituated in not discharging the service tax liability as for the earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable to them, along with interest. We find that this argument of the Learned Counsel needs to be deprecated. The appellant having collected service tax from their customers was duty bound to deposit the same with the Government of India. Having not done so, they have erred on the wrong side of law. We also find strong force in the contentions raised by the Learned Authorised Representative that the appellant herein is repeating this infraction in not depositing the amount collected as service tax from their customers with the Government of India as can be ascertained from the fact that, for the earlier period, i.e. for the period 2002-04, an identical issue came up before the bench and the bench by an order dated 02/09/2016 took a lenient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eimbursements for the food of the employees, while conducting the event management, transportation charges, we find from the debit notes that these amounts are collected at actual and there is no markup. The agreements which was produced before us indicate reimbursement of the amounts at actual for the food and other expenses incurred by the appellant for conducting the event management. In our considered view, the issue now stands squarely covered by the decision of the Hon'ble High Court of Delhi in the case of Intercontinental Consultants Technocrats Pvt. Ltd (supra) . Accordingly, we set aside the demand of service tax liability along with interest thereof and the amount of penalty imposed on them on this issue. The appeal on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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