TMI Blog2020 (10) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... CONSULTANTS AND TECHNOCRATS PVT. LTD. VERSUS UOI. ANR. [ 2012 (12) TMI 150 - DELHI HIGH COURT] , the reimbursable expenses that can be established as having been incurred for convenience, in accordance with an agreement between the two parties, to be passed on by the appellant without retention of any portion thereof is not amenable to inclusion in the gross amount envisaged in section 67 of Finance Act, 1994. Despite this defence having been placed before the lower authorities, the contentions thereof were not ascertained in the context of the contract and pass through of the payments. Neither before those authorities not before us has the appellant furnished the necessary evidence. This lapse on both sides is required to be resol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Central Excise Customs (Appeals), Goa, has led to the present dispute before us. 3. Learned Counsel for the appellant submits that the disputed amount were payments made to artists and suppliers of material on the request of the client without any additional consideration, other than the overall management charges on which tax liability had been duly discharged, obtained for it. According to him, these expenses were not incurred by the appellant in the course of managing the event hosted by their clients and, in accordance with the decision of the Hon ble Supreme Court in Union of India v. Intercontinental Consultants and Technocrats P Ltd [2018 (10) GSTL 401 (SC)], which, confirming the ultra vires of rule 5(1) of Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court, did not have the benefit of the finality accorded by the Hon ble Supreme Court. Furthermore, the decision of the Tribunal relied upon for adopting a contrarian approach, i.e., Neelav Jaiswal Bros v. Commissioner of Central Excise, Allahabad [2014 (34) STR 225 (Tri-Del)], records the existence of circumstances that are different. As that lead decision is not before us, we are unable to subject the present facts to the test of that precedent. In the light of the judgement of the Hon ble Supreme Court, the decisions of the Tribunal are rendered inconsequential. 6. In re Intercontinental Consultants and Technocrats P Ltd, the Hon ble Supreme Court has held rule 5(1) of Service Tax (Determination of Value) Rules, 2006, requiring a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in any manner defined in section 65 of Finance Act, 1994. 8. The implication, thereupon, is that the contracts entered into with the recipients of event management service by the appellant would determine the extent to which the two parties have visualized the proper rendering of the service and anything beyond those would be rendering of a different service that may or may not be taxable. Furthermore, in terms of the decision of the Hon ble Supreme Court, the reimbursable expenses that can be established as having been incurred for convenience, in accordance with an agreement between the two parties, to be passed on by the appellant without retention of any portion thereof is not amenable to inclusion in the gross amount env ..... X X X X Extracts X X X X X X X X Extracts X X X X
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