https://www.taxtmi.com/caselaws?id=771894 CESTAT Chennai ruled in favor of the appellant regarding service tax liability on reimbursed warehousing and related charges for 2006-07. The tribunal held that various reimbursed charges including CHA charges, warehousing charges, delivery order charges, and insurance charges collected from clients do not form part of taxable service value. Following SC precedent in UOI v Intercontinental Consultants, the tribunal found that Rule 5(1) of Service Tax Valuation Rules 2006 was ultra vires. The 2015 amendment to Section 67 including reimbursable expenditure in taxable value operates prospectively only. Demand for service tax, interest, and penalties on reimbursed expenses for pre-2015 period was held unsustainable. Appeal allowed. en-us Wed, 07 May 2025 00:00:00 +0530 Mon, 02 Jun 2025 08:34:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771894 CESTAT Chennai ruled in favor of the appellant regarding service tax liability on reimbursed warehousing and related charges for 2006-07. The tribunal held that various reimbursed charges including CHA charges, warehousing charges, delivery order charges, and insurance charges collected from clients do not form part of taxable service value. Following SC precedent in UOI v Intercontinental Consultants, the tribunal found that Rule 5(1) of Service Tax Valuation Rules 2006 was ultra vires. The 2015 amendment to Section 67 including reimbursable expenditure in taxable value operates prospectively only. Demand for service tax, interest, and penalties on reimbursed expenses for pre-2015 period was held unsustainable. Appeal allowed. Case-Laws Service Tax Wed, 07 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771894