TMI Blog2019 (2) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... OURT OF INDIA] has categorically held that the reimbursable expenses are not includable in the taxable value - demand do not sustain. Outdoor catering service - abatement under N/N. 1/2006 denied - Held that:- The appellant has availed the credit on input services which makes them ineligible for availing the benefit of abatement however, it is brought out by the Ld. Counsel that they have rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was noticed that they had collected service charges and reimbursement of expenses incurred by them under different heads. However, appellant had paid service tax only on service charges without including the reimbursable expenses in the taxable value. The department was of the view that the reimbursable expenses are also includable in the taxable value for discharging service tax. It appeared t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority confirmed the demand, interest and imposed equal penalty. Aggrieved, appellant is now before this forum. 2.1 On behalf of the appellant, Ld. Counsel, Shri G. Natarajan appeared and argued the matter. He submitted that the first issue is with regard to non-inclusion of reimbursable expenses in the taxable value. He submitted that the decision of the Hon ble Apex Court in the case of UOI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vocate in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. (supra) has categorically held that the reimbursable expenses are not includable in the taxable value. Following the same, we are of the view that the demand on this count cannot sustain which requires to be set aside, which we hereby do. 5.2 The second issue is with regard to the demand raised on outdoor catering se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imbursable expenses. With regard to the issue of availment of abatement, it is hold that the appellant would be eligible for abatement if the credit is reversed. However for limited purpose of verification whether credit is reversed, the matter is remanded to the adjudicating authority. 7. The appeal is partly allowed and partly remanded in the above terms with consequential benefits, if any, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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