Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
The CESTAT held that the advertisement charges collected by the appellant as reimbursement expense cannot be included in the gross value of franchise service. The revenue's case was based on Rule 5(1) and 5(2) of the Service Tax (Determination of Value) Rules, 2006, which were held unconstitutional and ultra vires the Finance Act, 1994. The advertisement expenses were ultimately borne by the franchisees as part of their business expenses and cannot be included in the gross value of franchise service. Consequently, the impugned order allowing the revenue's appeal was set aside, and the appeal was allowed.
The CESTAT held that the advertisement charges collected by the appellant as reimbursement expense cannot be included in the gross value of franchise service. The revenue's case was based on Rule 5(1) and 5(2) of the Service Tax (Determination of Value) Rules, 2006, which were held unconstitutional and ultra vires the Finance Act, 1994. The advertisement expenses were ultimately borne by the franchisees as part of their business expenses and cannot be included in the gross value of franchise service. Consequently, the impugned order allowing the revenue's appeal was set aside, and the appeal was allowed.
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TaxTMI 
TaxTMI 
of 4915 
