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TMI Blog2018 (6) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... service. It is not in dispute that the appellant has made such payments on behalf of the client M/s. Subiksha Trading Services. In the contract, it has been stated that while paying wages, the appellant has to deduct PF / ESI etc. as applicable and remit the same to the authorities concerned - Merely because the liability to deduct is cast upon the appellant, it cannot be said that these expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... difference in the income shown in P L account and ST3 returns. Show cause notice was issued raising the aboe allegations and proposing to demand service tax, interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and also imposed penalties under section 76 and 78 of the Finance Act, 1994. In appeal, Commissioner (Appeals) upheld the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded such reimbursable expenses for discharging service tax liability. These cannot be included in the total taxable value as these are reimbursed by the principal /client of the appellant. The ld. counsel adverted to copy of the contract letter with M/s. Subiksha Trading Services (client) and submitted that the liability is cast upon the appellant to pay the wages. The appellant thus deducts th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnai Vs. Sangamitra Services Agency - 2014 (33) STR 137 (Mad.). 3. Ld. AR Shri R. Subramanian reiterated the findings in the impugned order. 4. Heard both sides. 5. The demand is raised alleging that the reimbursable expenses have to be included in the taxable value. The original authority has thus confirmed the demand of ₹ 3,63,616/- along with interest and also imposed penaltie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing the decisions in the cases of Intercontinental Consultants and Technocrats P. Ltd. (supra) and Sangamitra Services Agency (supra), we are of the considered opinion that the impugned order cannot sustain. The impugned order is set aside and the appeal is allowed with consequential relief, if any. (Operative portion of the order was pronounced in open court) - - TaxTMI - TMITax - S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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