TaxTMI 
TaxTMI 
2012 (11) TMI 834
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....athew John: The appellant was providing services of Consulting Engineer to National Highways Authority of India during the period November 2001 to November 2003. They were registered with the service tax department and were paying service tax and filing returns. 2. On scrutiny of the documents of the appellants, Revenue found that the appellants were receiving certain consideration from NHAI und....
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.... along with interest. Further penalties equal to the said amount were imposed under Sections 76 and 78 of the Finance Act, 1994. Aggrieved by the order, the appellants filed appeal with the Commissioner (Appeals) who did not give any relief. Aggrieved by the order of Commissioner (Appeals), the appellants have filed this appeal. 4. The Counsel for the appellants submits that the agreement between....
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....cations issued by CBEC to the effect that reimbursed expenses incurred by Consulting Engineers would not form part of assessable value of such services:- i) B.43/5/97-TRU dated 2.7.97 ii) B.11/1/98-TRU 7.10.98 6. The Counsel for the appellant is also relying on the decision in their own case reported in 2007(5) STR-118 to the effect that such expenses would not form part of assessable val....
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....he Counsel, the learned AR for Revenue submits that the expenses were very essential for providing the service without such expenses, they could not provide the service at all. What the appellant has done is bifurcation of value of services into two parts, one for reimbursable expenses and the other for payment for consulting engineer service and paying service tax only on the latter. He submits t....