2015 (3) TMI 873

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.... the employees of the appellant had incurred travel expenses while providing output service and the said travel expenses were recovered from the service-recipient but the appellant had failed to pay service tax on the said expenses recovered from the service-recipient as contemplated in terms of the explanation to Section 67 of the FINANCE  Act, 1994. Hence a show cause notice dated 17/07/2008 was issued to appellant alleging contravention of the provisions of Section 68(1) read with Section 66 of the FINANCE  Act and hence the recovery of service tax amounting to Rs. 1,11,103/- was demanded along with interest in terms of Section 73(1) and 75 of the FINANCE  Act, 1994 respectively. Further, Sections 76, 77 and 78 were invoke....

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....e learned Departmental Representative would submit that provisions of Section 67 of the FINANCE  Act, 1994 would indicate that the gross amount which is charged for rendering the services should be the value on which the appellant needs to discharge service tax liability and in case the appellant has collected any amount over and above the service charges which were billed by them, that amount being the amount for rendering services should have been considered for discharge of service tax liability. 5. Heard both the sides. 6. The issue involved in this case is regarding inclusion of an amount which has been received by the appellant as reimbursements of travelling expenses for discharge of service tax liability under the categor....