TMI Blog2018 (10) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : Mr. Madhup Sharan, Assistant Commissioner (AR) ORDER PER : S.S GARG The present appeal is directed against the impugned order dated 30.09.2011 passed by the Commissioner of Central Excise and Service Tax whereby the Commissioner has confirmed the demand of service tax amounting to ₹ 10,55,38,108/- (Rupees Ten Crores Fifty Five Lakhs Thirty Eight Thousand One Hundred and Eight only) along with interest under Section 75 and penalty of ₹ 10,000/- (Rupees Ten Thousand only) under Section 77 and equal penalty under Section 78 of the Finance Act, 1994. Briefly the facts of the present case are that the appellant is a Banking company and is providing various services falling under the category of Banking and Other Financial Services. The bank charges commission on the same and offer the same to service tax. The appellant also incurred expenditure on behalf of the customer while offering the services and gets it reimbursed from the customer. Since it was only a reimbursement of expenses, the same was not offered to tax and the bank have not collected any tax from the customers. Based on the audit observation, a show-cause notice was issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chandigarh f. National Trades Agencies 2018 (6) TMI 1358 CESTAT Bangalore g. State Bank of India, Andhra Bank 2018 (6) TMI 1428 CESTAT Hyderabad h. Rajasthan Renewable Energy Corporation Ltd. 2016 (12) TMI 342 CESTAT New Delhi i. Quality Council of India 2016 (3) TMI 404 CESTAT New Delhi j. Sankhla Udyog 2014 (12) TMI 614 CESTAT New Delhi k. Bharat Sanchar Nigam Ltd. 2017 (11) TMI 213 CESTAT Bangalore l. Vulcan Industrial Engg. Co. P. Ltd. 2005 (11) TMI 111 CESTAT, Mumbai m. MP Water Power Management Institute 2009 (1) TMI 17 CESTAT New Delhi n. Bank of India 2017 (4) TMI 896 CESTAT Hyderabad 4. On the other hand, the learned AR defended the impugned order. 5. After considering the submissions of both the parties and perusal of the material on record and the various decisions relied upon by the appellants cited supra, we find that the only issue to be decided in the present case is whether the reimbursement of expenses is to be included in the value of taxable service or not during the relevant period. This issue was examined by the Hon ble Supreme Court elaborately in the case of Interconti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e., prior to May 01, 2006) or after its amendment, with effect from, May 01, 2006. Once this interpretation is to be given to Section 67, it hardly needs to be emphasised that Rule 5 of the Rules went much beyond the mandate of Section 67. We, therefore, find that High Court was right in interpreting Sections 66 and 67 to say that in the valuation of taxable service, the value of taxable service shall be the gross amount charged by the service provider 'for such service' and the valuation of tax service cannot be anything more or less than the consideration paid as quid pro qua for rendering such a service. 25) This position did not change even in the amended Section 67 which was inserted on May 01, 2006. Sub-section (4) of Section 67 empowers the rule making authority to lay down the manner in which value of taxable service is to be determined. However, Section 67(4) is expressly made subject to the provisions of subsection (1). Mandate of sub-section (1) of Section 67 is manifest, as noted above, viz., the service tax is to be paid only on the services actually provided by the service provider. 26) It is trite that rules cannot go beyond the statute. In B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory notification, may physically consists of words printed on papers. However, conceptually it is a great deal more than an ordinary prose. There is a special peculiarity in the mode of verbal communication by a legislation. A legislation is not just a series of statements, such as one finds in a work of fiction/non-fiction or even in a judgment of a court of law. There is a technique required to draft ST/490/2008-DB 8 a legislation as well as to understand a legislation. Former technique is known as legislative drafting and latter one is to be found in the various principles of interpretation of statutes . Vis-a-vis ordinary prose, a legislation differs in its provenance, layout and features as also in the implication as to its meaning that arise by presumptions as to the intent of the maker thereof. 28. Of the various rules guiding how a legislation has to be interpreted, one established rule is that unless a contrary intention appears, a legislation is presumed not to be intended to have a retrospective operation. The idea behind the rule is that a current law should govern current activities. Law passed today cannot apply to the events of the past. If we do something ..... X X X X Extracts X X X X X X X X Extracts X X X X
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