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TMI Blog2018 (7) TMI 1539X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived as reimbursements, payments made by the assessee/petitioner or received through reimbursements towards Senior Counsel fee, in the value of services rendered by it - impugned order quashed - petition allowed - decided in favor of petitioner. - W.P.(C) 4740/2017 - - - Dated:- 16-7-2018 - MR. S. RAVINDRA BHAT AND MR. A.K. CHAWLA JJ. Petitioner Through: Mr. Tushar Jarwal, Adv. with Mr. Rahul Sateeja, Adv. Ms. Priyadarshi Manish, Ms. Anjali J. Manish, Ms. Nidhi Saini, Advs. Respondent Through: Mr. Sanjeev Narula, SSC with Mr. Abhishek Ghai, Adv. S. RAVINDRA BHAT, J. (ORAL) 1. The petitioner has questioned a demand of ₹ 38,30,003/- made by the learned Assistant Commissioner of Service Tax consequent upon an adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ases). This Court had in its judgment in Intercontinental Consultants Technocrats Pvt. Ltd. (supra), held as follows: 18. Section 66 levies service tax at a particular rate on the value of taxable services. Section 67(1) makes the provisions of the section subject to the provisions of Chapter V, which includes Section 66. This is a clear mandate that the value of taxable services for charging service tax has to be in consonance with Section 66 which levies a tax only on the taxable service and nothing else. There is thus inbuilt mechanism to ensure that only the taxable service shall 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 g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d cannot be upheld. It is no answer to say that under subsection (4) of Section 94 of the Act, every rule framed by the Central Government shall be laid before each House of Parliament and that the House has the power to modify the rule. As pointed out by the Supreme Court in Hukam Chand v. Union of India, AIR 1972 SC 2427 :- The fact that the rules framed under the Act have to be laid before each House of Parliament would not confer validity on a rule if it is made not in conformity with Section 40 of the Act. Thus Section 94(4) does not add any greater force to the Rules than what they ordinarily have as species of subordinate legislation. 19. For the above reasons we quash the impugned showcause notice and allow the wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t High Court was right in interpreting Sections 66 and 67 to say that in the valuation of taxable service, the value of taxable service shall be the gross amount charged by the service provider 'for such service' and the valuation of tax service cannot be anything more or less than the consideration paid as quid pro qua for rendering such a service. 29) In the present case, the aforesaid view gets strengthened from the manner in which the Legislature itself acted. Realising that Section 67, dealing with valuation of taxable services, does not include reimbursable expenses for providing such service, the Legislature amended by Finance Act, 2015 with effect from May 14, 2015, whereby Clause (a) which deals with 'consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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