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2017 (9) TMI 624

Valuation - inclusion of reimbursable expenses in the assessable value - Rule 5(1) of the service tax (Determination of Value) Rules, 2006 - Held that: - since the period of dispute is prior to April 2006, the provisions of Rule 5(1) of the service tax (Determination of Value) Rules, 2006 will not be applicable for inclusion of reimbursable expenses in the assessable value for the purpose of payme .....

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he premises of the appellant, the officers of service tax Department observed that the activities undertaken by the appellant pursuant to the work order issued by M/s. Grasim Industries Ltd. relate to clearing and forwarding agency service. It was further observed that besides receipt of the commission amount from the principal towards rendering the taxable service, the appellant has also received .....

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appeal. 3. On the other hand, the ld. Advocate appearing for the respondent submitted that since the period of dispute is prior to April 2006, the provisions of Rule 5(1) of the service tax (Determination of Value) 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 insert .....

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.04.2006 is based on presumption only. 6. In absence of any statutory provisions, authorizing levy and collecting of tax on the reimbursable expenses, we are of the view that the service tax demand cannot be fastened 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 .....

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