https://www.taxtmi.com/caselaws?id=446442 CESTAT Ahmedabad allowed the appeal of a customs house agent (CHA) regarding service tax liability on reimbursable expenses. The department demanded service tax on various expenses incurred by the CHA on behalf of clients, arguing these were part of CHA services' gross value. CESTAT held that Rule 5 of Service Tax (Determination of Value) Rules, 2006 requiring inclusion of reimbursable expenses was ultra-vires to section 67, as established by SC in Intercontinental Consultants case. Following SC precedent and CBIC Circular, reimbursable expenses incurred on behalf of service recipients are not includible in taxable value. The demand was unsustainable and impugned order was set aside. en-us Mon, 04 Dec 2023 00:00:00 +0530 Tue, 05 Dec 2023 07:36:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446442 CESTAT Ahmedabad allowed the appeal of a customs house agent (CHA) regarding service tax liability on reimbursable expenses. The department demanded service tax on various expenses incurred by the CHA on behalf of clients, arguing these were part of CHA services' gross value. CESTAT held that Rule 5 of Service Tax (Determination of Value) Rules, 2006 requiring inclusion of reimbursable expenses was ultra-vires to section 67, as established by SC in Intercontinental Consultants case. Following SC precedent and CBIC Circular, reimbursable expenses incurred on behalf of service recipients are not includible in taxable value. The demand was unsustainable and impugned order was set aside. Case-Laws Service Tax Mon, 04 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446442