https://www.taxtmi.com/caselaws?id=446752 CESTAT Hyderabad allowed the appeal regarding inclusion of reimbursable expenses in service tax valuation. The tribunal relied on SC's decision in Union of India v. Intercontinental Consultants where Rule 5 of Service Tax (Determination of Value) Rules, 2006 was held ultra vires Section 66-67 of Finance Act 1994. SC observed that only after 2015 amendment to Finance Act's definition of consideration could reimbursable expenditure be included in taxable service valuation. Since appellants' expenses were reimbursed on actual basis through debit notes, not invoices, these constituted reimbursable expenses that cannot be included in gross value pre-2015 amendment. Demand was unsustainable and Commissioner (Appeals) order was set aside. en-us Fri, 01 Dec 2023 00:00:00 +0530 Sun, 10 Dec 2023 22:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446752 CESTAT Hyderabad allowed the appeal regarding inclusion of reimbursable expenses in service tax valuation. The tribunal relied on SC's decision in Union of India v. Intercontinental Consultants where Rule 5 of Service Tax (Determination of Value) Rules, 2006 was held ultra vires Section 66-67 of Finance Act 1994. SC observed that only after 2015 amendment to Finance Act's definition of consideration could reimbursable expenditure be included in taxable service valuation. Since appellants' expenses were reimbursed on actual basis through debit notes, not invoices, these constituted reimbursable expenses that cannot be included in gross value pre-2015 amendment. Demand was unsustainable and Commissioner (Appeals) order was set aside. Case-Laws Service Tax Fri, 01 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446752