https://www.taxtmi.com/caselaws?id=756503 The CESTAT Mumbai held that reimbursement costs received from a land owner under a Joint Development Agreement do not constitute consideration for services and are therefore not liable to service tax. The tribunal applied the principle established in Mormugao Port Trust case, approved by the SC, that such payments represent the appellant's share of joint venture revenue rather than service consideration. The extended period of limitation was deemed inapplicable as the department had full knowledge of the arrangement since 2017 but initiated action only in 2022 after requesting details, indicating no willful suppression. The Principal Commissioner's order was set aside and appeal allowed. en-us Fri, 02 Aug 2024 00:00:00 +0530 Mon, 05 Aug 2024 07:04:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756503 The CESTAT Mumbai held that reimbursement costs received from a land owner under a Joint Development Agreement do not constitute consideration for services and are therefore not liable to service tax. The tribunal applied the principle established in Mormugao Port Trust case, approved by the SC, that such payments represent the appellant's share of joint venture revenue rather than service consideration. The extended period of limitation was deemed inapplicable as the department had full knowledge of the arrangement since 2017 but initiated action only in 2022 after requesting details, indicating no willful suppression. The Principal Commissioner's order was set aside and appeal allowed. Case-Laws Service Tax Fri, 02 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756503