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TMI Blog2013 (3) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... material which would indicate that the petitioner received anything in excess of 14.22 crores by way of reimbursement from its clients. The figure of 37.55 crores includes the direct expenditure incurred by the petitioner for which no reimbursement was claimed nor given. The petitioner has been able to make out a very good prima facie case that no additional tax is payable by it in respect of the service rendered by it. - However, since the petitioner has already paid a sum of 40 lacs, following the directions of the Tribunal, we are not inclined to interfere with that part of the order. - Insofar as the balance 60 lacs is concerned, stay granted. X X X X Extracts X X X X X X X X Extracts X X X X ..... 14.22 crores by way of reimbursement for expenses incurred by it. It is, if at all, only the sum of ₹ 14.22 crores which could be the subject matter of taxation. If the approximate average rate of tax is taken to be 10%, then the entire tax liability, if at all, would be only to the extent of ₹ 1.4 crores. Therefore, according to the learned counsel for the petitioner, even if the stand of the revenue is accepted that the reimbursed expenditure can be the subject matter of service tax, only an amount of ₹ 1.4 crores would be the resulting tax. However, the learned counsel for the petitioner submitted that the issue of charging service tax on reimbursable expenditure has been decided against there venue in the case of Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel for the respondents, the petitioner has been adequately protected and substantial relief has been given to the petitioner and this Court ought not to interfere with the impugned order passed by the Tribunal. 6. Having examined the matter at some length, we find that, prima facie, the issue of levying and charging service tax on reimbursable expenditure has been settled by the decision of this Court in Intercontinental Consultants & Technocrats Pvt. Ltd (supra).Therefore, prima facie, the amount of ₹ 14.22 crores, which has been actually received by the petitioner from its clients towards reimbursement of expenses, could not be the subject matter of service tax. Any how even if we assume that the expenditure, which has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity, the actual receipts did not increase by ₹ 10 crores inasmuch as there were contra entries indicating direct costs of the same amount of ₹ 10 crores. 8. Thus, if the figure of ₹ 37.55 crores, which has been taken by the revenue, is added to the figure of ₹ 33.00 crores, which has been billed and received by the petitioner for professional services, the resulting amount would be approximately ₹ 70 crores. This would mean that the petitioner actually received a sum of ₹ 70 crores as revenue from its clients. But, according to the learned counsel for the petitioner, it isnobody's case that the petitioner actually received the said sum of ₹ 70crores. Therefore, in whichever way we look at it, we f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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