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TMI Blog2012 (11) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... - ST/Appeal No.462/2006 - ST/A/539/12-CUS - Dated:- 4-6-2012 - Archana Wadhwa, Mathew John, JJ. For Appellant: Shri Akash Deep, CA For Respondent: Shri B L Soni, SDR Per: Mathew John: The appellant was providing services of Consulting Engineer to National Highways Authority of India during the period November 2001 to November 2003. They were registered with the service tax department and were paying service tax and filing returns. 2. On scrutiny of the documents of the appellants, Revenue found that the appellants were receiving certain consideration from NHAI under different headings as below:- i) Remuneration for local staff; ii) Remuneration for support staff; iii) Transportation iv) Duty travel to site v) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty of NHAI on completion of the contract. Therefore, he submits that these expenses were incurred by the appellants clearly on behalf of the NHAI and NHAI reimbursed such expenses. Such reimbursements cannot be considered as consideration for the service of Consulting Engineers provided by them to NHAI. 5. The Counsel relies on the following clarifications issued by CBEC to the effect that reimbursed expenses incurred by Consulting Engineers would not form part of assessable value of such services:- i) B.43/5/97-TRU dated 2.7.97 ii) B.11/1/98-TRU 7.10.98 6. The Counsel for the appellant is also relying on the decision in their own case reported in 2007(5) STR-118 to the effect that such expenses would not form part of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thy Traders Vs CCE Cochin He points out that in spite of clear decision of the Tribunal in the year 2001 itself, the appellant chose not to pay tax on the full value. Therefore, ground of suppression alleged by the department is maintainable. 9. We have considered arguments of both sides. What we find is that taxability of reimbursable expenses on travel local accommodation, etc. incurred by a Consulting Engineer has been under dispute, from the early stage from which said service was made taxable. The impression of the appellants was backed by instructions from CBEC. The decision of the larger Bench of the Tribunal deciding the matter in Shri Bhagavathy Traders (Supra) is under challenge before the Apex Court. 10. For the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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