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TMI Blog2022 (4) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... e it was held that the electricity charges which is reimbursed on actual basis in terms of the contract is not includible in the gross value of service provided by the appellant to Gujarat Gas Company Limited. Thus, the issue involved herein has been settled inasmuch as the electricity charges reimbursed to the service provider by the service recipient not includible in gross value of service. Following the ratio of the above judgment, the demand is not sustainable - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... the same. Hence this Appeal 2. The learned counsel Shri Akshay Modi appearing on behalf of the appellant submit that appellant is earning commission income under the Franchise Agreement with Gujarat Gas Company Ltd. for Providing infrastructure support service. As per the franchise Agreement, the appellant is acting as pure agent as liability to pay electricity charges for Compressor, dispensers and forecourt lighting to Electricity Company is of CGCL as par para 4.6 of the Franchise Agreement. Both the lower authorities without appreciating the facts and circumstances of the case included the electricity bill paid in the assessable value for the levy of service tax. He placed on reliance on the following judgments: * Union of India Vs I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intendent Authorized Representative appearing for the Revenue relies on the impugned order and prays for dismissal of the appeal of appellant and submits that the cost incurred on reimbursement of expenses, if any, needs to be included in the gross value of the taxable services rendered. 4. We have carefully considered the submissions made by both the sides and perused the records. 4.1 The issue under consideration is that whether the Appellant are liable to pay Service tax on reimbursement of electricity charges received from the service recipient M/s Gujarat Gas Company Ltd. We find that identical issue involving under the identical contract has been decided by this Tribunal in the case of Pragati CNG supra by relying the decision of Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, electricity charges for compressor, dispensers installed at the particular outlet shall be borne by GGCL. An independent electricity meter will have to be provided for this purpose." 2.1. The appellant pointed out that they were paying Service tax for the fixed charges received by them for provision of service, however, they were not including the value of the electricity charges recovered as reimbursements from Gujarat Gas for the purpose of payment of Service Tax. 2.2 Learned Counsel argued that the issue involved in the present case is squarely covered by the decision of this Tribunal in the case of Kiran Gems Pvt. Ltd. 2019 (25) G.S.T.L. 62 (Tri- Ahmd.) wherein under similar circumstances exclusion of electricity charges re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , land revenue, assessment or levies payable by the firm in respect of the site and shall pay all bills for electricity, water and other utilities utilized at the outlet. However, electricity charges for compressor, dispensers installed at the particular outlet shall be borne by GGCL. An independent electricity meter will have to be provided for this purpose." It is seen that the contract puts the liability of expenditure of Service Tax on Gujarat Gas and they have also placed a separate meter for assessment of the actual electricity consumed. We find that the issue is squarely covered by the decision of this Tribunal in the case of Kiran Gems Pvt. Ltd. (supra) where after relying on the decision of Tribunal in the case of ICC Reality (In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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