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TMI Blog2025 (2) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellant. We have heard learned Chartered Accountant for the appellant and learned authorised representative for the Revenue and perused the records of the case. 2. The appellant, an insurance surveyor, rendered services during 2012-2013 and charged surveyor fees and was also registered with the service tax department. In addition to the surveyor fee, the appellant received reimbursement of certain expenses such as conveyance, halting charges, photocopy charges, etc. 3. Receiving information that the appellant had not paid service tax on the amount of consideration and reimbursement of expenses received for his services during the period 2012-2013, the department started an investigation. It found that the total receipts of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltants and Technocrats Pvt. Ltd. is misplaced. The Hon'ble High Court of Delhi has merely declared the Rule 5 (1) of the Service Tax Valuation Rules as ultra vires of Section 67 of the Finance Act, 1994. The Apex court has held that the Rule 5 of the Rules went much beyond the mandate of section 67 and the Delhi HC was right in interpreting sections 66 and 67 to hold that the value of taxable service shall be gross amount charged by the service provider 'for such service' and the valuation for service tax could not be anything more or less than the consideration paid as quid pro quo for rendering such a service. It has been held that the authorities are to find what is the gross amount charged for providing 'such' taxable services. As a for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived by the service provider and the answer is negative as per the judgment of the Supreme Court in Intercontinental Consultants. The relevant portion of the judgment is as follows. "24. In this hue, the expression 'such' occurring in Section 67 of the Act assumes importance. In other words, valuation of taxable services for charging service tax, the authorities are to find what is the gross amount charged for providing 'such' taxable services. As a fortiori, any other amount which is calculated not for providing such taxable service cannot a part of that valuation as that amount is not calculated for providing such 'taxable service'. That according to us is the plain meaning which is to be attached to Section 67 (unamended, i.e., prio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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