2009 (3) TMI 375

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....y  01 to January, 2001/2007 on the ground that the appellant had provided services which can be categorized under taxable services under Section 65(105)(g) of the Finance Act, 1994 as amended and for the purpose of arriving at the service tax liability, the valuation of the taxable services for charging service tax for the purpose of the Act is "the value of any taxable services shall be the gross amount charged by the service provider for such service provided or to be provided by him". The said show cause notice alleged that the appellant is not discharging the service tax liability on the reimbursement expenses they have collected from their clients. The appellant contested the show cause notices before the adjudicating authority an....

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....s cannot be included for arriving at the ser vice tax liability. 5. Learned JCDR on the other hand would submit that the OIA has given a detailed reasoning and reiterates the same. It is her submission that the reimbursement of expenses in respect of consulting engineer is excludable from the gross amount only if they are rendering manpower recruitment services as a part of consulting engineer services. She would submit that there is nothing on record to show that the reimbursable expenditure as claimed is pertaining to manpower recruitment. 6. We have considered the submissions made at length by both sides and perused the records. The issue for determination in this case is whether the reimbursable expenditure incurred by the appella....

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....uded by the assessing officer. From the documentary evidence produced, it is seen that the entire amount receipts cannot be subject to service tax as part of the amount is on account of reimbursable expenses. The lower authorities have not followed the DGST Circular. According to the Notification Nos. 21/2003-S.T., dated 20-11-2003 and 6/99-S.T., dated 9-4-99, the taxable services for which payment is received in India is convertible foreign exchange is exempted from the whole of service tax under Section 66 of the Act. We find that the Commissioner (Appeals) has not properly examined the implication of the above notifications. In our view the demand of differential tax is sustainable both on merits and limitation. We also find that the low....