TMI Blog2017 (9) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... ue) Rules, 2006 will not be applicable for inclusion of reimbursable expenses in the assessable value for the purpose of payment of service tax, for the reason that the said rule was inserted in the statue book w.e.f 18.04.2006 - In absence of any statutory provisions, authorizing levy and collecting of tax on the reimbursable expenses, the service tax demand cannot be fastened against the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was further observed that besides receipt of the commission amount from the principal towards rendering the taxable service, the appellant has also received reimbursement of various expenses incurred by it for and on behalf of its principal. On the basis of the said observations made by the audit officers, the Department initiated show cause proceedings against the appellant, which culminated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be applicable for inclusion of reimbursable expenses in the assessable value for the purpose of payment of service tax, for the reason that the said rule was inserted in the statue book w.e.f 18.04.2006. In support of the stand that reimbursable expenses would not form part of the value for the purposes of service tax liability, the ld. Advocate has relied on the decision of this Tribunal in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned against the service provider. Since Sub-Rule (1) of Rule 5 was introduced on 18.04.2006, providing for inclusion of reimbursable expenses in the value under Section 67 ibid, the said provisions will not have any retrospective application to the services provided prior to such effective date. 7. Therefore, we do not find any infirmity in the impugned order passed by the ld. Commissioner (App ..... X X X X Extracts X X X X X X X X Extracts X X X X
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