2015 (2) TMI 593 - SCH - Service Tax

Inclusion of amount of Re-imbursement of expenses in the value of taxable services for the purposes of levy of service tax - Company providing consulting engineering services - Petitioner receives payments not only for its service but is also reimbursed expenses incurred by it such as air travel, hotel stay, etc - Supreme Court granted the leave in the appeal filed by the Revenue against the decision of High Court 2012 (12) TMI 150 - DELHI HIGH COURT - Wherein High Court held that Rule 5 (1) which provides for inclusion of the expenditure or costs incurred by the service provider in the course of providing the taxable service in the value for the purpose of charging service tax is ultra vires Section 66 and 67 and travels much beyond the scope of those sections. To that extent it has to be struck down as bad in law.