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TMI Blog2019 (1) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... otor Vehicles". Department was of the view that the expenses incurred by the dealers, like the appellant herein, for providing free services during warranty period are reimbursed by the manufacturer of vehicles. Therefore, it appeared that appellants while discharging the service tax liability for provision of such free services during the warranty period had paid service tax only on the labour charges portion and not paid service tax on the portion of material cost reimbursed by them from the motor vehicle manufacturers. So also, on verification of records, it was found that appellants had rendered services in the category of Business Auxiliary Service (BAS0 in as much as they received incentives from banks for arranging vehicle loans and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 - CESTAT Chennai and Dream Loanz Vs CCE Coimbatore - 2017 (6) G.S.T.L. 443 (Tri.-Chennai) 3. Heard Ld. A.R Shri B. Balamurugan who supports the impugned order. 4.1 After hearing both sides, we find that Ld. Advocate is correct in his assertion. The issue as to taxability of the reimbursable expenses has finally been laid to rest by the Hon'ble Supreme Court in the case of UOI Vs Intercontinental Consultants and Technocrats Pvt. Ltd. (supra) where it was held that only w.e.f. 14.05.2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of value of taxable services for charging service. This Bench of the Tribunal in a recent decision in the case of Coimbatore Anamallais Agencies (sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be levy of tax (hereinafter referred to as the service tax) @ 12% of the value of taxable services referred to in sub-clauses of Section 65 and collected in such manner as may be prescribed." 23. Obviously, this Section refers to service tax, i.e., in respect of those services which are taxable and specifically referred to in various sub-clauses of Section 65. Further, it also specifically mentions that the service tax will be @ 12% of the 'value of taxable services'. Thus, service tax is reference to the value of service. As a necessary corollary, it is the value of the services which are actually rendered, the value whereof is to be ascertained for the purpose of calculating the service tax payable thereupon. 24. In this hue, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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 BabajiKondajiGarad, this rule was enunciated in the following manner : "Now if there is any conflict between a statute and the subordinate legislation, it does not require elaborate reasoning to firmly state that the statute prevails over subordinate legislation and the byelaw, if not in conformity with the statute in order to give effect to the statutory provision the Rule or bye-law has to be ignored. The statutory provision has precedence and must be complied with." 27. The aforesaid principle is reiterated in ChenniappaMudaliar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is aspect of the matter, we may usefully refer to the Constitution Bench judgment in the case of Commissioner of Income Tax (Central)-I, New Delhi v. Vatika Township Private Limited [(2015) 1 SCC 1] wherein it was observed as under : 27. A legislation, be it a statutory Act or a statutory rule or a statutory 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 a legislation as well as to underst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isting law. 29. The obvious basis of the principle against retrospectivity is the principle of "fairness", which must be the basis of every legal rule as was observed in L'Office Cherifien des Phosphates v. Yamashita-Shinnihon Steamship Co. Ltd. Thus, legislations which modified accrued rights or which impose obligations or impose new duties or attach a new disability have to be treated as prospective unless the legislative intent is clearly to give the enactment a retrospective effect; unless the legislation is for purpose of supplying an obvious omission in a former legislation or to explain a former legislation. We need not note the cornucopia of case law available on the subject because aforesaid legal position clearly emerges fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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