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TMI Blog2023 (5) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... imbursable expenses reimbursed to the Appellant to be included in the assessable value. 2. The facts of the case are that the Appellant has been appointed as a sole selling agent of M/s. Nilachal Ispat Nigam Ltd. (NINL) for selling the product of M/s. NINL. For rendering the said services, the Appellant was receiving a fee @ 3% of the gross sale value from M/s.NINL. The Appellant discharged Service Tax thereon. Further during the course of rendering the said services, the Appellant incurred various expenses on behalf of M/s. NINL which were reimbursed to them. The Revenue is of the view that the reimbursable expenses are includible in gross taxable value of service by invoking Rule 5(1) of Service Tax Valuation Rules, 2006. Therefore, vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the re-imbursable expenses are to be includible in the gross value of the service provided by the Appellant in terms of Rule 5(1) of Service Tax (Determination of Value) rules, 2006 or not. 7. We find that the said issue came up before the Hon'ble Delhi High Court in the case of Intercontinental Consultants and Technocrats Pvt.Ltd. (supra), wherein the Hon'ble High Court has observed as under:- "18. Section 66 levies service tax at a particular rate on the value of taxable services. Section 67(1) makes the provisions of the section subject to the provisions of Chapter V, which includes Section 66. This is a clear mandate that the value of taxable services for charging service tax has to be in consonance with Section 66 which lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are incurred by the service provider "in the course of providing taxable service". What is brought to charge under the relevant Sections is only the consideration for the taxable service. By including the expenditure and costs, Rule 5(1) goes far beyond the charging provisions and cannot be upheld. It is no answer to say that under sub-section (4) of Section 94 of the Act, every rule framed by the Central Government shall be laid before each House of Parliament and that the House has the power to modify the rule. As pointed out by the Supreme Court in Hukam Chand v. Union of India, AIR 1972 SC 2427 :- "The fact that the rules framed under the Act have to be laid before each House of Parliament would not confer validity on a rule if it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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