2018 (2) TMI 1114

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... otal value for the purpose of discharging service tax - whether the amount of ₹ 3,39,539/- received by the appellant would fall under reimbursable expenses or not? Held that: - The appellants are engaged in rendering Manpower Recruitment and Supply Agency service and not any Advertisement Agency service - it can be seen from the advertisement charges, which was incurred to be a one-time o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Raman, Advocate - For the Appellant Shri S. Govindarajan, AC (AR) - For the Respondent ORDER Per: Bench The brief facts of the case are that the appellants are registered with the Service Tax department under the category of Man Power Recruitment and Supply Agency service . During the course of audit, it was noticed that there was difference in the valuation shown in the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he Tribunal. 2. On behalf of the appellant, the Ld. Counsel Shri J. Shankar Raman, submitted that the appellant had filed a detailed reply contending that the said amount cannot be subject to levy of service tax as these are reimbursable expenses. The contract entered by the appellant with the client would make it clear that arranging for advertisement space is not part of the service rendered .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e expenses and cannot be included in the total value of taxable services as decided in the judgment of the Hon ble Madras High Court in the case of CST Vs. Sangamitra Services Agency - 2014 (33) STR 137 (Mad.). 3. Ld. AR, Shri S. Govindarajan, AC, reiterated the findings in the impugned order. He submitted that only the actual expenses can be considered to be reimbursable expenses. The said .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r permission has to be taken and these have to be invoiced at cost. Thus it can be seen from the advertisement charges, which was incurred to be a one-time occasion and was only expenses incurred on behalf of the client which are reimbursed on actual basis. We therefore follow the decision in the in the case of Sangamitra Services Agency (supra) and hold that the demand is unsustainable. The i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X