TMI Blog2018 (2) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... ot attract Section 78 - penalty set aside. Matter remanded to the original authority for decision on the claim of the appellant regarding correct classification as well as exclusion of reimbursement expenses and value of sale of goods - appeal allowed by way of remand. - ST/470/2009-CU[DB] - A/50268/2018-CU[DB] - Dated:- 9-1-2018 - Mr. S.K. Mohanty, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) Present for the Appellant: Mr. P.K. Sahu, Advocate Present for the Respondent: Mr. Amresh Jain, D.R. ORDER Per: B. Ravichandran The appeal is against order dated 19.03.2009 of Commissioner of Service Tax, New Delhi. The appellants are registered Service Tax assessee and are undertaking various type ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vities undertaken by them are of miscellaneous in nature and, referring to a list of such activities, the ld. Counsel submitted that these will not be covered under the tax entry for event management service. These are more in the nature of business support service and will not come under the purview of tax liability during the material time. 3. Since the activities themselves are not liable to tax, the appellants having discharged the tax under a mistaken understanding of the law, question of short levy on such non-taxable activities does not arise. Alternatively, he submitted that all the expenses incurred by them under the terms of understanding with the client, which are in the nature of reimbursement expenses, paid by the client on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service the ld. AR submitted that the appellants claim regarding re-imbursement necessarily has to be verified with connected supporting document. Mere assertion that some portion of consideration is a reimbursable expenditure by itself will not make it eligible for exclusion. It should be categorically brought out that the expenditures are otherwise should have been incurred by the client, which the appellant is incurring and getting the same reimbursed on actual basis without any markup. There can be no lump-sum reduction from the taxable value on this account. 6. We have heard both the sides and perused the appeal records. 7. The appellants were registered with the Department under event management service. After audit of accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cers on 07.09.2006. Without specifically commending on the merits of the claim of the appellant for a particular classification of their activities, it is clear that due finding has not been recorded on their claim by the lower authority. In other words, the appellants got themselves registered under event management service by itself does not automatically justify all such services are to be taxed under that category, especially when the appellants are raising the basic issue of mistaken classification and pleading for correct classification. The Revenue should examine their submission and arrive at a correct classification and tax accordingly. This aspect requires examination based on various documents and terms of arrangement with vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. Vs. CCE -2015 (38) S.T.R. 705 (Tri.) 4. C.S.T. Vs. Karam Freight Movers 2017 (4) G.S.T.L. 215 (Tri.) 10. Admittedly, the legal position is that reimbursement expenses made on actual basis are not to be included in the gross taxable value. This aspect can be verified with the basic documents, which are available with the appellant and list of such expenses are already submitted before the jurisdictional authorities. This requires cross verification with the documents. 11. Regarding limitation and penalty, the findings recorded by the original authority at para 28.4, we note that the finding is that the appellant clearly not indulged any fraud, collusion or willful misstatement . It is also recorded that the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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