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TMI Blog2022 (6) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Thus, service tax could not have been levied on the reimbursed expenses - the Commissioner (Appeals), therefore, was not justified in holding that the reimbursable expenses would be subjected to service tax. 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 ..... lients to whom the assessee has provided services, but for paying service, service tax on its receipts (called professional charges). Such amounts of reimbursement have not been included i.e. grossly undervalued its income. Service tax appears to have been evaded & have been demanded in show cause notice. 22.2 The provision of the section no-where defines for the exclusion of the charges claimed by the noticee. The statue in an un-ambiguous term defines that service tax is to be paid on gross amounts charged; Even for where there is an inclination on the part of the assessee for to claim any deduction (whether admissible or not) it has to be declared & specifically mentioned for the purpose of assessment. To interpret the law/statue to on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtra from their customers in their returns. The appellants have quoted circular No.11/03/19980TRU dated 07.10.98 but the impugned order says that even if seen in the spirit of the circular quoted, the reimbursement claimed here has no direct nexus with the services and that these expenses are not verifiable. The impugned order has also observed that there is no direct co-relation between the amounts reimbursed and invoices raised. The appellants have not been able to negate the observations made in the impugned order and have summarily failed in explaining as to why these expenses were not reflected in their returns or as to why the same are not tallying with the invoices raised by them." 6. As no one had been appearing on behalf of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in such manner as may be prescribed." 23. Obviously, this Section refers to service tax, i.e., in respect of those services which are taxable and specifically referred to in various subclauses of Section 65. Further, it also specifically mentions that the service tax will be @12% of the 'value of taxable services'. Thus, service tax is reference to the value of service. As a necessary corollary, it is the value of the services which are actually rendered, the value whereof is to be ascertained for the purpose of calculating the service tax payable thereupon. 24. In this hue, the expression 'such' occurring in Section 67 of the Act assumes importance. In other words, valuation of taxable services for charging service tax, the authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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