2008 (2) TMI 279

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..... S. Ravi Shankar and K.S. Naveen Kumar, Advocates, for the Appellant. Smt. Sudha Koka, SDR, for the Respondent. Order per : S.L. Peeran, Member (J) (Oral)]. The appellants are required to pre-deposit Service Tax of ₹ 77,39,016/- and penalty of ₹ 1.24 crores under Section 78, besides penalties under various Sections. They were covered under the category of 'Management Consultancy Services' and 'Repair and Maintenance'. They were paying Service Tax on the services provided by them. The Revenue Intelligence carried out search and found from the Balance Sheet that the assessee did not pay Service Tax on charges realised from the customers and accounted for under the head Reimbursements in their .....

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..... 4. Malabar Management Services Pvt. Ltd. v. CST, Chennai - 2008 (9) S.T.R. 483 (Tri.) = 2008 (12) VST 133 (CESTAT-Chennai) Held, amount received as reimbursement of staff salaries and infrastructural expenses not includible in value of taxable services. 5. Copy of the clarification issued by DGST in October 2003 - published in R.K. Jain's Central Excise Manual Reimbursement of actual expenses are not subject to service tax. 6. Trade Notice No. 53-C.E (Service Tax)/97, dated 4-7-1997 issued by the New Delhi Commissionerate Service Tax is not chargeable on reimbursements - Para 4.5 .....

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..... hemphar Drugs Liniments [1989 (40) E.L.T. 276 (S.C.)] (iv) Padmini Products v. Collector [1989 (43) E.L.T. 195 (S.C.)] (v) Pushpam Pharmaceuticals v. Collector [1995 (78) E.L.T. 401 (S.C.)] (vi) Cosmic Dye Chemical v. CCE [1995 (75) E.L.T. 721 (S.C.)) (vii) CCE v. Vineet Electrical Industries Pvt. Ltd. [2002 (144) E.L.T. A292 (S.C.)] 3. The Commissioner has noted that the assessee collected amounts from the customers towards rent of godown, salaries of their employees and incentives given to such employees. They had not discharged Service Tax on these amounts and that was also required to be added in the assessable value and hence confirmed the demands. He noted that these details had not been informed t .....

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