Tax Tribunal: Reimbursable expenses not taxable. Legal precedent cited. Consistency key.

The Tribunal dismissed the Revenue's appeal against the Commissioner (Appeals)'s decision, maintaining that reimbursable expenses, such as conveyance and courier charges, should not be included in the total value of taxable services for service tax liability. The Tribunal relied on previous decisions from the High Courts and Tribunals, emphasizing the importance of consistency in judicial decisions. The appeal was dismissed due to the settled legal position on the issue and the relatively small amount involved.

---

---

Issues:
1. Inclusion of reimbursable expenses in the total value of taxable services for service tax liability.

Analysis:
The appeal was filed by the Revenue against the order passed by the Commissioner (Appeals) setting aside the demand, interest, and penalties imposed. The issue revolved around whether reimbursable expenses should be included in the total value of taxable services for the purpose of discharging service tax liability. The department contended that such expenses, like conveyance and courier charges, incurred by the respondent while rendering services, should be included. However, the Commissioner (Appeals) had ruled in favor of the respondent, stating that reimbursable expenses are not includible in the total value of taxable services.

In response, the counsel for the respondent cited precedents such as the decision in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. Vs UOI and the decision of the Madras High Court in CST Chennai Vs Sangamitra Services Agency, arguing that these supported their position. Additionally, reference was made to a Tribunal decision in Dream Loanz Vs CCE Coimbatore, which also favored the assessee on this issue.

Upon hearing both sides, the Tribunal noted that the issue had already been settled by the decisions of the Hon'ble High Court of Delhi and the Madras High Court, as well as by previous Tribunal decisions. The Tribunal emphasized the importance of judicial discipline and consistency in decisions, ultimately deciding not to interfere with the Commissioner (Appeals)'s order. It was also noted that the amount involved in the department's appeal was less than Rs. 10 lakhs. Consequently, the appeal was dismissed, maintaining the ruling that reimbursable expenses are not to be included in the total value of taxable services for service tax liability.

---