TaxTMI 
TaxTMI 
2010 (12) TMI 410
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....gued that reimbursement of expenditure is a device to take away certain essential expenses from the purview of gross value of taxable service to avoid tax liability. The expenses which are essential for execution of the taxable service and no service can be rendered without such expenditure, that cannot be out of ambit of tax. He categorically submits that certain expenditure which are inventible (sic) (inevitable) to provide taxable service and that cannot be disintegrated nor separable but are inextricably connected with the service provided, Such expenditure contributes to the value of service which by no stretch of imagination can be ignored. Therefore, following the Division Bench decision in the case of Naresh Kumar & Co. Pvt. Ltd. v.....
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....aterials handling charges, commission paid to bank, renewal of licences, stationery remuneration paid to staff and loading and unloading expenses were subject matter of consideration before him. Learned Commissioner following the decision of Single Member Bench made on 8-12-2006 in the case of S. Jayashree v. CCE, Mangalore reported in 2007 (6) S.T.R. 389 (Tri. - Bang.) and ignoring Division Bench decision made on 29-5-2009 in the case of Naresh Kumar & Co. Pvt. Ltd. v. CST, Kolkata reported in 2008 (11) S.T.R. 578 (Tri. - Kolkata) allowed the relief to the respondent holding in para 10 of the order that the expenses like transportation charges, loading and unloading charges, rent of godown and clerk salary are not includible in the taxable....
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....Revenue. In whatever manner the recipient and provider of taxable service arrange their affairs for their benefit or mutuality to deal with consideration that is also immaterial to Revenue. Service Valuation Rule of 1994 (sic) contributes to the above fiscal philosophy and the destination based consumption tax submit for taxation on the gross value of taxable service which is measure of taxation. The gross value takes into its fold entire cost of service enabling that to be performable. Therefore, by no stretch of imagination neither the arrangements of the parties nor their mutuality or nomenclature or format of their agreement and mode of discharge of consideration shall prevail on the law relating to service tax. Legislature accordingly ....
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....onstruction services, mandapwalas etc.. Performance based services are services provided by service providers like stock-brokers, practicing chartered accountants, practicing cost accountants, security agencies, tour operators, event managers, travel agents etc.". 7. The nature and character of service tax has also been explained by Apex Court in para 22 of the judgment Association of Leasing & Financial Service Companies v. Union of India and Others reported in 2010-TIOL-87-SC-ST-LB = 2010 (20) S.T.R. 417 (S.C.). "22. In All India Federation of Tax Practitioners' case (supra), this Court explained the concept of service tax and held that service tax is a Value Added Tax ('VAT' for short) which in turn is a destination based....
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....factured or produced or sold. Thus, service tax is imposed every time service is rendered to the customer/client. This is clear from the provisions of Section 65(105)(zm) of the Finance Act, 1994 (as amended). Thus, the taxable event is each exercise/activity undertaken by the service provider and each time service tax gets attracted. The same view is reiterated broadly in the earlier judgment of this Court in Godfrey Phillips India Ltd. v. State of U.P. [(2005 (2) SCC 515] = (2005-TIOL-10-SC-LT-CB) in which a Constitution Bench observed that in the classical sense a tax is composed of two elements : the person, thing or activity on which tax is imposed. Thus, every tax may be levied on an object or on the event of taxation. Service tax is,....