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TMI Blog2024 (1) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... on co.Ltd. vs. C.C.E., pune -III -2016 (43) S.T.R. 132 (Tri.- Mumbai) Hindustan Oil Exploration Co. Ltd. Vs. Commr. of GST & C. EX., Chennai 2019 (25) G.S.T.L. 252 (Tri. Chennai) Indian Additives Ltd. Versus Commissioner of GST & Central Excise Chennai, Outer Commissionerate 2021 (10) TMI 487 CESTAT Chennai VSL India Private Limited Versus Commissioner of Service Tax, Chennai 2023 (3) TMI 802 CESTAT Chennai T.V.S. Motor Company Ltd. Vs. CCE-2021 (55) G.S.T.L. 459 (Tri. Chennai) Garware Polyester Ltd. Vs. Commissioner of C. EX. & CUS., Aurangabad 2017 (5) G.S.T.L. 274 (Tri. Mumbai) Centre For High Technology Vs. C.S.T. -Service Tax Delhi (8) TMI 243 CESTAT New Delhi 2.1 He further submits the Section 67 of the Finance Act, 1994, provides the mechanism for computation of value of taxable services for charging Service tax. It means the gross amount charged by the service provider for such service provided or to be provided by him in case consideration is charged in terms of money. Accordingly, the gross amount charged in the present case is the invoice value and not over and above therefore the service tax is payable only on the invoice value. The TDS was separately depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing judgments:- Simplex Infrastructures Ltd. Vs. Commissioner of Service Tax, 2016 (42) S.T.R. 634 (Cal.) Delhi International Airport Ltd. Vs. Commissioner of CGST- 2019(24) GSTL 403 (T). Binjrajka Steel Tubes Ltd. Vs. Commissioner of C. Ex., 2016 (342) EL T 302 (T) Roma Henny Security Service Pvt. Ltd. Vs. Commissioner of Service Tax, Delhi, 2018 (8) G.S.T.L. 239 (Del.) 3. Shri Anoop Kumar Mudvel, Learned Superintendent (AR) appearing on the behalf of the Revenue reiterates the finding of the impugned order. 4. We have carefully considered the submission made by both the sides and perused the records. We find that as per the un-disputed fact the appellant have paid the service tax on the total value of the invoice raised by the Foreign Service Provider under reverse charge mechanisms. As per the Income Tax Act, the appellant have discharged the TDS on the invoice value and the same was borne by the appellant. In this position, since the TDS is not a part and partial of gross value of the service, the same cannot be taxed under Finance Act, 1994. As per Section 67, it is clear provision that the only the gross value towards the service paid or payable shall be chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation-For the purposes of this section. (a) "consideration" includes any amount that is payable for the taxable services provided or to be provided (b) money includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value (c) gross amount charged includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment." It can be seen from the above reproduced Section 67 that it contemplates how the valuation of taxable service for charging Service Tax needs to be arrived and sub-section 1(1) provides for valuation wherein consideration paid in money, be the gross amount charged by the service provider. The phrase "gross amount cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with regard to the second type of contracts. The appellant has furnished documents to show that though TDS amount is deposited the same is borne by the appellant and has not been made part of the consideration. On perusal of documents, we are convinced that TDS has been borne by the appellant. For example, the letter dated 10-5-2006 shows that the appellant has to pay USD 319710 to the foreign company, namely, Thai Nippon Steel Engineering & Construction Corporation Ltd. The said amount has been fully paid as per the foreign certificate remittances. They have not deducted TDS but in fact have discharged the TDS liability. The appellant has borne the same as expenses of their company. On such score, we find that the demand of service tax alleging that TDS has not been included in the gross value is incorrect on facts and cannot sustain. We find that the issue is covered by the decision relied upon by the Ld. Counsel in the case of Magarpatta Township Development & Construction Co. Ltd. (supra), wherein the facts are as under- "3 The Learned Counsel took us through the facts of the case and submits that the agreement entered by the appellant with the foreign architect is very clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artly performed in India, shall be the total consideration paid by the recipient for such services including the value of service partly performed outside India." It can be seen from the above reproduced Rule that for the purpose of discharge of Service Tax for the service provided from outside India, the value is equal to the actual consideration charged for the services provided or to be provided. In the case in hand, we specifically asked for the invoice/bill raised by the service provider and on perusal of the same, we find that appellant had discharged the consideration as raised in the said invoice/bill. There is nothing on record that Indicates that the appellant had recovered that amount of Income Tax paid by them on such amount paid to the service provider from the outside India and any other material to hold that this amount is paid as consideration for services received from service provider. 9. In our considered view, the plain reading of Section 67 with Rule 7 of Service Tax Valuation Rules, in this case in hand, Service Tax liability needs to be discharged on amounts which have been billed by the service provider." d) VSL India Private Limited ( supra ) : - "2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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