2013 (9) TMI 69

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....pplication for waiver of predeposit of tax of Rs.9,64,172/- and penalty of equal amount along with interest. The demand of tax is related to the period from 2005-06 to 2009-10. 2. The learned advocate submits that the demand was raised on reimbursement of certain amounts received by the applicant from Citi Bank on account of certain expenditures, such as courier charges, telephone charges, travel....

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....consideration to the submissions made by both sides and on perusal of the records, the relevant portion of the adjudication order is reproduced below:    "17.3 I find that Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 which prescribes the manner of valuation in such circumstances, reads as follows:-    "where any expenditure or costs are incurred by the se....

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....purpose of determination of the correct Service Tax liability." 5. We find that the Hon'ble Delhi High Court in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. has held as under:-    "11. In the aforesaid backdrop of the basic features of any legislation on tax, we have no hesitation in ruling that Rule 5 (1) which provides for inclusion of the expenditure or costs i....