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TMI Blog2018 (9) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... iable to be paid on gross amount charged for providing these services. None of these expenditures are a liability of service recipient. All of them are essential ingredients necessary to provide the service. Thus, the same cannot be termed as ‘reimbursements’. The impugned order is upheld on merits. However, benefit of limitation is extended to the appellant. The penalties are also set aside - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ements but relies on the Service Tax Valuation Rules which were not in force during the time of these reimbursements. She argued that in terms of Circular of CBEC dated 02.07.1997 such deductions are permissible from value of taxable service. She argued that the amounts recovered by them are not held to be reimbursements by original adjudicating authority. Commissioner (Appeals), went beyond the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Service Tax Valuation Rules. However, as per Section 67, the Service Tax is liable to be paid on gross amount charged for providing these services. None of these expenditures are a liability of service recipient. All of them are essential ingredients necessary to provide the service. Thus, the same cannot be termed as reimbursements . The matter in respect of similar expanses has been exami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice is includible in the gross value of the services. In the present case the nature of expenses is such, which his mandatory for carrying out the business of clearing and forwarding agency, therefore in our considered view so called reimbursement escaped from payment of service tax is clearly includible in the gross value of services of clearing and forwarding agency. According, we hold that s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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