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TMI Blog2019 (4) TMI 1692X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be set aside - the demand of interest and penalties also do not survive. Appeal allowed - decided in favor of appellant. - Appeal Nos: ST/789 & 3623/2012 - A/30396-30397/2019 - Dated:- 26-2-2019 - Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical) Shri Vishal Agarwal, Advocate for the Assessee. Shri C. Mallikarjun Reddy, Superintendent/AR for the Revenue. ORDER Per: P.V. Subba Rao. 1. Both these appeals are against the same impugned order i.e., Order-in-Original No. 25/2011-ST dated 27.12.2011 and hence are being disposed of together. 2. Heard both sides and perused the records. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant and reimbursed by Marico on the ground that service tax on these charges were in fact paid by Marico as GTA (Goods Transport Agency) service under reverse charge mechanism. The remaining part of the demand was confirmed and penalty was imposed on the assessee. 4. Aggrieved by the impugned order, these appeals are filed by the assessee and the department. The department s appeal is against the portion of the demand which was dropped by the adjudicating authority while the assessee s appeal is on the ground that the demand is not sustainable on merits as well as on limitation. 5. At the outset, learned counsel for the appellant would submit that the core issue in this is whether reimbursable expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble expenses received by the service provider in terms of Rule 5(1) of Service Tax (determination of value) Rules, 2006. This rule itself has been struck down by the Hon ble Apex Court as ultra vires in the case of Intercontinental Consultants and Technocrats Pvt Ltd (supra) and the issue is now finally settled that service tax can only be charged on the amount received for the services and not on the reimbursable expenses. We, therefore, find that the impugned order which is based on such demand is not sustainable and is liable to be set aside and we do so. Consequently, the demand of interest and penalties also do not survive. 8. The impugned order is set aside and the assessee s appeal is allowed and the revenue s appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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