2012 (6) TMI 119

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..... to pay certain amount to any third party and the said amount is paid by the service provider on behalf of the service recipient, the question of reimbursing the expenses incurred on behalf of the recipient shall arise - the claim for reimbursement towards rent for premises, telephone charges, stationery charges, etc. amounts to a claim by the service provider that they can render such services in vacuum - what are costs for inputs services and inputs used in rendering services cannot be treated as reimbursable costs as there is no justification or legal authority to artificially split the cost towards providing services partly as cost of services and the rest as reimbursable expenses - the aforesaid decision was not before the ld. Commissio .....

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..... se notice and imposed penalty. Being aggrieved by the same, the appellants have filed this appeal. 5. The contention of the appellant is that the reimbursable amount has not been deducted while arriving at the value for which the claim made by them was not considered by the ld. Commissioner on the ground that the appellants have not produced the supporting documents evidencing the claim. The contention is that now they are in a position to produce the requisite documents. The contention is that they are able to show that they have not got anything more than what they have received as real Customs House Agent. 6. The contention of the ld.A.R. (Commissiioner) for the Department is that although the appellants have made a claim before .....

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..... egal or contractual to pay certain amount to any third party and the said amount is paid by the service provider on behalf of the service recipient, the question of reimbursing the expenses incurred on behalf of the recipient shall arise. For example, when rent for premises is sought to be claimed as reimbursement, it has to be seen whether there is an agreement between the landlord of the premises and the service recipient and, therefore, the service recipient is under obligation for paying the rent to the landlord and that the service provider has paid the said amount on behalf of the recipient. The claim for reimbursement of salary to staff, similarly has to be considered as to whether the staff were actually employed by the service reci .....

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