9911796707
TMI Blog2024 (9) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax.' The demand of service tax for the impugned period cannot sustain and requires to be set aside. The impugned order is set aside - Appeal allowed. - HON BLE MS. SULEKHA BEEVI. C. S. , MEMBER ( JUDICIAL ) And HON BLE MR. VASA SESHAGIRI RAO , MEMBER ( TECHNICAL ) Shri Rajaram Ramanan , Consultant , for the Appellant Shri N. Sathyanarayanan , Authorised Representative for the Respondent ORDER Per Ms. Sulekha Beevi. C. S Brief facts are that the appellant is engaged in the activity of Management of Assets of the various schemes of M/s. Sundaram Mutual Fund. During the course of audit of accounts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 357 rendered by the Hon ble Supreme Court. It has been held that reimbursable expenses is not to be included in the taxable value. It is prayed that the impugned order may be set aside. 3. The Ld. AR Shri N. Satyanarayanan appeared for the department. The findings in the impugned order was reiterated. 4. Heard both sides. 5. After perusal of record we find that the demand is made on the reimbursable expenses incurred by the service provider and for which debit notes were issued to the appellant. In para 5 of the show cause notice the department has noted as under : - The Mutual Fund Distributors or Agents provide the sales promotion services to the mutual fund by organizing meetings with Investors. Whatever expenses Incurred by them in rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall b treated as consideration for the taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax on the said service. Moreover, the Mutual Fund distributors are not to be considered as pure agents of the taxpayer as they do not fulfill the conditions stipulated under the Rules. The Rule says that the pure agent should not use such goods or services so procured. In this case the renting of Auditorium etc., are mainly used by the distributors in the provision of Sales Promotion Services to the Mutual Fund. From the above it can be seen that the demand is made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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