TMI Blog2023 (4) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... bursable expenses were not used to be the part of the taxable income. The position stands duly clarified and settled by the Hon ble Apex Court in Intercontinental Consultancy [ 2018 (3) TMI 357 - SUPREME COURT ] where it was held that Though, it was not argued by the learned counsel for the Department that Section 67 is a declaratory provision, nor could it be argued so, as we find that this is a substantive change brought about with the amendment to Section 67 and, therefore, has to be prospective in nature. In the case of Harinder Goyal, [ 2015 (12) TMI 1107 - CESTAT NEW DELHI ] as relied upon by the Department, it is observed that there also it was specifically held that reimbursement towards shortage fuel/ diesel consumed in genera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 67 of the Finance Act, 1994 in the taxable value. 2. Brief facts of the case are that the Appellant is engaged in providing services to M/s Bharat Petroleum Corporation Limited, Udaipur (hereinafter referred to as BPCL ) to run and operate a Company owned and company operated (hereinafter referred to as COCO ) Motor Spirit/HSD retail outlet and received the amount on account of providing such services. It was alleged in the show cause no. 13422 dated 21.11.2012 notices that the said services are covered under the scope of Business Auxiliary Service classifiable under Section 65(105)(zzb) of the Finance Act, 1994. Accordingly, the demand of Rs. 1,31,959/- for a period from 01.06.2010 to 31.08.2011 under the category of business au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al prayed to be allowed. 6. Per contra, learned authorised representative appearing for the Department has relied upon the decision of CESTAT, New Delhi in the case of Harinder Goyal vs. CCE, Chandigarh [2015(12) TMI 1107 CESTAT New Delhi , wherein the appeal of the assessee who was aggrieved of inclusion of reimbursable expenses in the taxable income was dismissed. However, learned authorised representative as conceded the decision as is relied upon by the learned counsel for the appellant. 7. Having heard the rival contentions, we observe and hold as follows: (a) It is an admitted fact that the appellant is engaged in managing the affairs of the company owned and company operated outlet on a fixed consideration with commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of providing or agreeing to provide a taxable service. Thus, only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax. Though, it was not argued by the learned counsel for the Department that Section 67 is a declaratory provision, nor could it be argued so, as we find that this is a substantive change brought about with the amendment to Section 67 and, therefore, has to be prospective in nature. 8. This is the decision after the amendment in Section 67 of Service Tax Act. Still it was specifically held by the Hon ble Apex Court that: 9. As regards the service tax liability on the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also form part of the remuneration or Commission (by whatever name called). The phrase by whatever name called must necessarily have some link or reference or nature to the receipt of remuneration or commission. Thus, if a receipt is for reimbursing the expenditure incurred for the purpose, the mere act of reimbursement, per se, would not justify the contention of the Revenue that the same, having the character of the remuneration or commission, deserves to be included in the sum amount of remuneration/commission. 10. This Tribunal in Commissioner of ST-I, Mumbai vs. Virtual Marketing (I) Pvt Ltd. has followed the decision of Sangamitra (supra). We do not find any reason in the given facts and circumstances to differ from the said d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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