2024 (9) TMI 842

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..... m Ramanan , Consultant , for the Appellant Shri N. Sathyanarayanan , Authorised Representative for the Respondent ORDER Per Ms. Sulekha Beevi. C. S Brief facts are that the appellant is engaged in the activity of Management of Assets of the various schemes of M/s. Sundaram Mutual Fund. During the course of audit of accounts of the appellant, it was noted that they were paying service tax on r .....

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..... ith interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. Aggrieved by such order, the appellant preferred appeal before the Commissioner (Appeals) who upheld the same. Hence this appeal. 2. On behalf of the appellant, the Ld. Consultant Shri Rajaram Ramanan appeared and argued. It is submitted that the issue as .....

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..... as under : - The Mutual Fund Distributors or Agents provide the sales promotion services to the mutual fund by organizing meetings with Investors. Whatever expenses Incurred by them in relation to organizing the above meeting are to be included in the assessable value and the service receiver viz., the Sundaram Asset has to discharge the service tax liability. For Instance, the Distributor(A) ra .....

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..... the sales promotion in their own Invoice. In case, if the distributors claim re-imbursement of the incidental expenses by way of debit notes the taxpayer is not discharging their Service Tax liability properly. The Incidental expenses Incurred, by the distributors while rendering their Business Auxiliary Service relating to Sales Promotion would also form part of the gross value of the service. Ru .....

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..... e it can be seen that the demand is made for not including the expenses incurred for providing the service and reimbursed. The issue is settled by the decision of the Hon'ble Supreme Court in the case of Intercontinental Consultants and Technocrats, Pvt Ltd (supra). 6. After appreciating the facts and following the decision of the Apex Court, we are of the view that the demand of service tax for .....

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