2013 (11) TMI 919 - AT - Service Tax

Demand of service tax - Reimbursement charges collected by the appellant from their clients - Held that - Following decision of INTERCONTINENTAL CONSULTANTS AND TECHNORATS PVT. LTD. Versus U. O. I. & ANR. 2012 (12) TMI 150 - DELHI HIGH COURT - Rule 5 is struck down which mandates for inclusion the reimbursements, for discharge of service tax liability. We are of the view that the appellant has made out a prima facie case for the waiver of the amounts involved - stay granted.

Summary

Issues:
1. Stay petition restoration by High Court
2. Service tax liability on reimbursement charges
3. Deposit made by the appellant
4. Listing of appeal for disposal

Issue 1: Stay petition restoration by High Court
The judgment discusses the restoration of a stay petition by the Hon'ble High Court of Gujarat, which set aside the previous order of the tribunal dismissing the stay petition and appeal due to a delay in filing. The High Court's oral order dated 27.02.13 in a special civil application No.434/13 reinstated the matter to the tribunal's records for reconsideration.

Issue 2: Service tax liability on reimbursement charges
The primary issue in this case pertains to the service tax liability on reimbursement charges collected by the appellant from their clients. Reference is made to a judgment of the Hon'ble High Court of Delhi in the case of Intercontinental Consultants & Technocrats Pvt. Ltd., wherein rule 5, mandating the inclusion of reimbursements for service tax liability, was struck down. The tribunal acknowledges that the appellant has a prima facie case for the waiver of the amounts involved, especially considering the deposit made against the confirmed demand.

Issue 3: Deposit made by the appellant
The appellant had deposited an amount of Rs.51,035/- against the confirmed demand of Rs.1,94,520/-. The tribunal deemed this deposit sufficient to hear and dispose of the appeal, indicating the appellant's compliance with the financial obligations pending the final decision on the matter.

Issue 4: Listing of appeal for disposal
The counsel representing the appellant requested that the appeal be heard and disposed of on the same day as other similar cases listed before the bench for final disposal. Acknowledging the merit in this request, the tribunal directed the registry to list the appeal along with other appeals for disposal on 25.06.13, ensuring timely and efficient resolution of the matter.

This detailed analysis of the judgment highlights the significant legal issues addressed by the tribunal, including the restoration of the stay petition, service tax liability on reimbursement charges, the deposit made by the appellant, and the listing of the appeal for disposal in conjunction with similar cases.