2022 (11) TMI 1544

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..... es. It has been ruled by the Hon'ble High Court that both under the un-amended and amended provisions of Section 67 ibid, the charge of service tax under Section 66 ibid has to be on the value of taxable service i.e., the value of service rendered by the assessee and nothing more. The Hon'ble High Court further observed in the said judgment that the expenditure or cost incurred by the service provider in the course of providing the taxable service can never be considered as the gross amount charged by the service provider 'for such service' provided by him. The impugned order is set aside and the appeal is allowed in favour of the appellant.
Hon'ble Mr. S.K. Mohanty, Member (Judicial) And Hon'ble Mr. C J Mathew, Member (Technical) For .....

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..... are contained in Section 67 of the Finance Act, 1994. Sub-section (1) of Section 67 ibid, relevant for consideration of the present dispute, provides that where service tax is chargeable on any taxable service with reference to its value, then such value shall, in the case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him. In exercise of the powers conferred by clause (aa) of sub-section (2) of Section 94 of the Finance Act, 1994 the Central Government has made the Service Tax (Determination of Value) Rules, 2006 vide Notification No. 12/2006-ST, dated 19.04.2006, as amended. Rule 5 in the said rules has provided for inc .....

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..... . 6370/2008 before the Hon'ble Delhi High Court, which was disposed off vide judgment dated 30.11.2012, in declaring such Rule 5 as ultra vires. It has been ruled by the Hon'ble High Court that both under the un-amended and amended provisions of Section 67 ibid, the charge of service tax under Section 66 ibid has to be on the value of taxable service i.e., the value of service rendered by the assessee and nothing more. The Hon'ble High Court further observed in the said judgment that the expenditure or cost incurred by the service provider in the course of providing the taxable service can never be considered as the gross amount charged by the service provider 'for such service' provided by him. Civil Appeal filed by the Union of India .....

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