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TMI Blog2023 (11) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... ursable expenses are not exigible to Service Tax. This decision was upheld by the Supreme Court. It is to be noted that the expenses on travelling, lodging and boarding were specifically considered in the aforesaid judgment and it has been held that no Service Tax is payable on them. Since the issue found in favour of the appellant on merits, the matter of extended period of limitation need not be looked into - The demand cannot be upheld - the penalties imposed on appellants also need to be set aside - appeal allowed. - MR. DILIP GUPTA, PRESIDENT AND MR. P. V. SUBBA RAO, MEMBER (TECHNICAL) Shri B.L. Narsimhan, Ms. Poorvi Asati, Advocates for the Appellant Shri S.K. Meena, Authorized Representative of the Department O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt payment of service tax. Audit reports were issued to the appellant on 02.08.2013 and 14.11.2014 which culminated in the issue of show cause notice dated 31.03.2015 proposing recovery of service tax of Rs. 8,02,935/- on the amounts which the appellant had paid to the hotels towards board and lodging of the international experts of the service provider. Demand was raised invoking extended period of limitation under proviso to section 73 (1) of the Finance Act 1994 [Finance Act] Interest was also proposed to be recovered on the amount of Service Tax and penalties were proposed to be imposed on the appellant. By its letter dated 10.07.2015, the appellant contested the proposals in the show cause notice. However, these were confirmed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per Article 7 of the agreement between them it was agreed that these expenses will be paid for and borne by the appellant directly. (iii) It was held by Delhi High Court in Intercontinental Consultants and Technocrats Pvt. Ltd. vs Union of India [Intercontinental Consultants and Technocrats Pvt. Ltd. vs Union of India 2012(12) TMI 150- Delhi High Court] and affirmed by the Supreme Court [ Intercontinental Consultants and Technocrats Pvt. Ltd. vs Union of India 2018(3) TMI 357- Supreme Court ] that reimbursable expenses are not exigible to Service Tax. In fact, the appellant is in a better position because the appellant had not reimbursed any expenses to the service provider but had incurred expenses on its own and paid the amounts to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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