TMI Blog2018 (5) TMI 1217X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010 to 31st March, 2011, which is prior to the amendment with effect from 01/05/2011 - administration charges are not subject to service tax prior to 01/05/2011 and accordingly the demand of ₹ 48,74,108/- set aside. Levy of service tax - notional 'fund management charges' - Held that: - no service tax can be demanded on such notional value which have not been collected and not charged by the service provider. Whether the appellants have provided exempted service, that is, the difference between the gross premium collected minus mortality charges, whether the same is in the nature of exempt service and is liable to reversal of input credit under the provisions of Rule, 6(1) of CCR, 2004? - Held that: - the value on which Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed minus mortality charges, whether the same is in the nature of exempt service and is liable to reversal of input credit under the provisions of Rule, 6(1) of CCR, 2004. 4. Heard the parties. 5. So far the first issue is concerned regarding chargeability of service tax on the administration charges, we find that such levy have been introduced with effect from 1st May, 2011, when the definition in Section 65(105)(zx) was amended, and for the words in relation to the risk cover in the life insurance the words by an insurer, including re-insurer carrying on life insurance business where substituted. Thus evidently administrative charges also became taxable (being part of the insurance premium) with effect from 01/05/2011. The period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to indicate that it is the total amount charged without deduction of any expenses. Merely by use of the word gross the Department does not get any jurisdiction to go beyond the contract value to arrive at the value of taxable services. Further, by the use of the word charged , it is clear that the same refers to the amount billed by the service provider to the service receiver. Therefore, in terms of Section 67, unless an amount is charged by the service provider to the service recipient, it does not enter into the equation for determining the value on which service tax is payable. 7. So far the third issue is concerned (in the Revenue appeal) on going through the definitions and provisions of law as pointed out by the learned coun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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