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    <title>2025 (1) TMI 1444 - CESTAT AHMEDABAD</title>
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    <description>CESTAT Ahmedabad allowed the appeal regarding service tax levy on reimbursement of fixed costs. The tribunal held that charging fixed and variable costs separately for job-charges does not alter the manufacturing nature of activity. Service tax would only apply if charges were collected without any manufacturing activity taking place. Since goods were manufactured, the fixed cost reimbursement did not constitute a taxable service, following the tribunal&#039;s earlier precedent in a similar case involving the same appellant.</description>
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      <link>https://www.taxtmi.com/caselaws?id=765379</link>
      <description>CESTAT Ahmedabad allowed the appeal regarding service tax levy on reimbursement of fixed costs. The tribunal held that charging fixed and variable costs separately for job-charges does not alter the manufacturing nature of activity. Service tax would only apply if charges were collected without any manufacturing activity taking place. Since goods were manufactured, the fixed cost reimbursement did not constitute a taxable service, following the tribunal&#039;s earlier precedent in a similar case involving the same appellant.</description>
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