TMI Blog2018 (11) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... at contracts will be signed and whether they will be liable to service tax during that period - there is no ground to charge service tax on the mobilization advance received by the appellant - demand set aside. Liability of service tax - Amounts received towards reimbursement of income tax and VAT paid including the TDS paid by the appellant and reimbursed by the Indian Navy - Held that:- These are in the nature of reimbursable expenses and hence cannot be included in the value of taxable services as has been held by the Hon’ble Supreme Court in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. [2018 (3) TMI 357 - SUPREME COURT OF INDIA] - Demand set aside. Liability of service tax - amounts received towards RTDs - Held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the payments to be made in future contracts. ii) An amount paid by the appellant as income tax deducted from the payments to be made to the Russian overseas suppliers but which were instead reimbursed by the Indian Navy. There was also an amount which the appellant paid as VAT for goods procured procured domestically which was also reimbursed by Indian Navy. iii) An amount paid by the appellant to the Russian company for procuring Repair Technical Documents (RTDs) on behalf of the Indian Navy. 3. It is the case of the Revenue that the amount received by the appellant from Indian Navy for building facilities at their shipyard are in the nature of advance payments for taxable services to be provided and the service tax has to be pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x paid by the appellant as TDS for the overseas suppliers and reimbursement of VAT paid are concerned, the Learned Commissioner held in the impugned order as a natural corollary, the amounts of income tax and VAT amounts associated with the service which were reimbursed to HSL by Indian Navy are to be treated as part of the consideration for rendering the said service on which the amount of service tax will have to be computed . The Learned Counsel for the appellant argued that in the case of Intercontinental Consultants Technocrats Pvt. Ltd., [2018 (10) GSTL 401 (S.C.)] the Hon ble Supreme Court held that, any amount which is calculated not for providing taxable service cannot form part of value, and service tax is to be paid only on se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l that these are reimbursable expenses cannot be included in the value of taxable service in view of the judgment of the Hon ble Apex Court in the case of Intercontinental Consultants Technocrats Pvt. Ltd., (supra). As an alternative submission of the Learned Counsel also argued that the entire facts were available to the Revenue and they have been paying service tax and filing periodical service tax returns and therefore they cannot be held to have suppressed facts, or committed fraud, collusion, wilful mis-statement or contravened of provisions of Act with an intent to evade payment of service tax. It is also his contention that as a public sector undertaking they have no intention to evade tax defrauding the Government. He therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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