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2024 (12) TMI 1182 - HC - GST


Issues:
Challenge to Order-in-Original regarding reimbursible expenses for taxable services under Finance Act, 1994.

Analysis:
The petitioner challenged Order-in-Original No.26-30/2022(c) dated 29.04.2022 confirming demands on reimbursible expenses for specific periods. The Court noted the decision in Union of India Vs. M/s.Intercontinental Consultants and Technocrats Pvt. Ltd. The writ petition was partially dismissed with liberty to appeal to the Appellate Body for the period between 14.05.2015 to June 2017. The petitioner complied and filed an appeal for that period. The dispute revolves around the inclusion of reimbursable expenses for taxable services under the Finance Act, 1994.

The Supreme Court upheld the decisions of the Delhi High Court and highlighted the amendment to Section 67 by the Finance Act, 2015. This amendment included reimbursable expenditure in the valuation of taxable services from May 14, 2015, making it prospective in nature. The Court emphasized the importance of legislative interpretation and the presumption against retrospective operation of laws. The principle of fairness underlies the rule against retrospectivity, ensuring existing laws govern current activities and protect accrued rights.

Both counsels confirmed no other disputes in the impugned order. As the issue is resolved in favor of the petitioner for the period before 14.05.2015, the demand confirmed in the impugned order for that period is quashed. The writ petition is allowed to that extent with no costs incurred. Connected Miscellaneous Petitions are closed.

 

 

 

 

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