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TMI Blog2019 (5) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... m. This goes to show that the appellants were under the bona fide belief that these are reimbursable expenses and would not be includible in the taxable value. The issue whether reimbursable expenses are subject to levy of service tax was under litigation and had travelled up to the Hon ble Apex Court wherein it was settled by the decision in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [ 2018 (3) TMI 357 - SUPREME COURT OF INDIA] . The Department does not have a case that the appellants did not reflect the amount received by them in the nature of salaries/wages in their account. The Department has failed to establish that the appellants have wilfully suppressed facts with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Aggrieved, the appellants have filed the present appeal. 3.1 On behalf of the appellant, Ld. Advocate Shri. M. Mani Maran submitted both oral and written arguments which can be summarized as under : (i) The appellant was arranging manpower to its group companies, for which the appellant was paid service charges. The appellants raised two sets of invoices : one for the actual service provided by them for which service tax was paid and the other set of invoices, for the reimbursement of wages. (ii) It is admitted that the appellant has paid service tax on the service charges received by them. The impugned Show Cause Notice seeks to recover service tax on the reimbursement of wages collected a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt received by them and also the wages paid to the workers in their accounts as well as the financial statements. In fact, the audit has raised the objection basing on the accounts maintained by the appellants. Thus, the allegation that the appellants have suppressed facts with intention to evade payment of service tax is factually wrong. (v) The appellants discharged service tax on the service charges received by them. Separate invoices were issued showing the reimbursement of wages. The appellants were under the bona fide belief that the said reimbursement of wages is not to be included in the taxable value and therefore, have not discharged any service tax. The issue of reimbursable expenses was under litigation and had t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntribution are includible in the gross amount charged for payment of service tax, he relied upon the decision in the case of M/s. Neelav Jaiswal Brothers Vs. Commissioner of C.Ex., Allahabad reported in 2014 (34) S.T.R. 225 (Tri. Del.) 5. Heard both sides. 6. The issue is with regard to the non-payment of service tax on the salaries/wages received by them from their service recipients. 7. It is not in dispute that the appellants have discharged service tax on the service charges. The appellants contend that the said salaries/wages are reimbursable expenses. Ld. Counsel for the appellant has placed the samples of invoices raised by the appellants to the service recipients. It is clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Apex Court wherein it was settled by the decision in the case of M/s. Intercontinental Consultants and Technocrats Pvt. Ltd. (supra). The Department does not have a case that the appellants did not reflect the amount received by them in the nature of salaries/wages in their account. In fact, they have properly accounted the amounts received and also reflected the same in their financial statements. This being so, the allegation that the appellant has suppressed facts with an intention to evade payment of service tax is without any factual basis. 8.3 There is no positive act of suppression brought out by the Department to establish that the ingredients of Section 78 of the Finance Act, 1994 are attracted in the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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