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TMI Blog2013 (12) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... ry judgment of any other High Court or Supreme Court has been brought to our notice - Following decision of Intercontinental Consultants & Technocrats Pvt. Ltd Vs. Union of India [2012 (12) TMI 150 - DELHI HIGH COURT] - Decided in favour of assessee. - Appeal No. ST/128 & 129/2011, ST/43,160 & 368/2012-DB - Final Order Nos. A/10900-10904/2013-WZB/AHD - Dated:- 9-7-2013 - Mr. M.V. Ravindran and Mr. H.K. Thakur, JJ. For the Appellant: Sh. P.M. Dave (Adv.), Ms. Shilpa Dave (Adv.) and Sh. Kuntal Parikh (Adv.) For the Respondent: Sh. M. Kutty (AR.) and P.N. Sarvaiya JUDGEMENT Per : Mr. H.K. Thakur; These appeals have been filed by the appellants against the orders passed by Commissioner (Appeals). The issue involved is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Value) Rules 2006. 4. After hearing both the sides at length and perusal of records it is observed that the issue of addition of reimbursable charges by a Service Provider has been settled by Delhi High Court in the case of Intercontinental Consultants Technocrats Pvt. Ltd Vs. Union of India case (supra). In paras 10,12 18 of this judgment Hon ble Delhi High Court has given the following rulings. 10. The contention of the petitioner that Rule 5(1) of the Rules, in as much as it provides that all expenditure or costs incurred by the service provider in the course of providing the taxable service shall be treated as consideration for the taxable service and shall be included in the value for the purpose of charging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Chapter i.e. Chapter V of the Act which provides for the levy, quantification and collection of the service tax. The power to make rules can never exceed or go beyond the section which provides for the charge or collection of the service tax. 12. There is ample authority for the proposition that the rules cannot override or overreach the provisions of the main enactment. I Central Bank of India v. Their Workmen, AIR 1960 SC12, a Constitution Bench of the Supreme Court was concerned with the Banking Companies Act, 1949. Section 10 of the Act prohibit the grant of industrial bonus to bank employees inasmuch as such bonus is remuneration which takes the form of a share in the profits of the banking company. Rule 5 of the Banking Companie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es a tax only on the taxable service and nothing else. There is thus inbuilt mechanism to ensure that only the taxable services hall be evaluated under the provisions of 67. Clause (i) of sub-section (1) of Section 67 provides that the value of the taxable service shall be the gross amount charged by the service provider for such service. Reading Section 66 and Section 67 (1) (i) together and harmoniously, it seems clear to us that in the valuation of the taxable service, nothing more and nothing less than the consideration paid as quid pro quo for the service can be brought to charge. Sub-section (4) of Section 67 which enables the determination of the value of the taxable service in such manner as may be prescribed is expressly made su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is made not in conformity with Section 40 of the Act. 5. From the above interpretation of law it is apparent that a subordinate rule cannot extend the valuation scope of a service to be determined under Sec. 67 of the Finance Act, 1944. Argument of the AR that appellants have not fulfilled the condition of Rule- 5(2) of the Service Tax (Determination of Value) Rules 2006 is not relevant in view of the fact that Rule-5 (1) itself has been struck down by Delhi High Court in its judgment dt. 30/11/2012 and no contrary judgment of any other High Court or Supreme Court has been brought to our notice. In view of the above settled position of law the appeals filed by the appellants are allowed with consequential relief, if any. (Pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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