2016 (9) TMI 136

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.... 3. The issue involved in this case is regarding service tax liability on the appellant in respect of the services under the category of 'Commercial Training and Coaching' service and also under 'Management Consultancy' service.  Appellant herein has engaged the services of foreigners for extending management consultancy service to them and discharged service tax liability on the amount paid by them to such foreigners as provided under reverse charge mechanism of Section 66A of the Finance Act, 1994.  It is the case of the Revenue that during the visit of the foreigners to India, appellant had spent an amount for stay and out of pocket expenses in respect of the foreigners, which were found to be towards travel, lodging and boar....

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....is excluded from service tax net as per the judgment of the Hon'ble High Court of Delhi in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. v. Union of India & Anr. 2012 -TIOL-966-HC-DEL-ST. 5. Learned Departmental Representative, on the other hand, would draw our attention to the order-in-original and order-in-appeal. It is his submission that the foreigners who were visiting India are lodged by the appellant in a five star hotel and vehicles are provided for the movement of these individuals. He would submit that there is no dispute as to the services rendered by the said foreigners and the tax liability discharged in accordance with Section 66A on the amount paid to the foreigners.  But the amount incurred for l....

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....on, be considered as an amount to be paid or payable to the foreigners who rendered the services of management consultancy. 6.3. Thirdly, Revenue has not disputed the fact that the hotels as well as rent-a-cab services have discharged service tax liability on the amounts paid by the appellant for the services rendered by them.  If that be so, the same cannot be added as an amount paid to the foreigners and taxed under reverse charge mechanism.  7. In view of the foregoing, we hold that the service tax liability on the amounts paid by the appellant to the hotels and rent-a-cab services are not taxable under the reverse charge mechanism in the hands of the appellant. It is also to be noticed that the said amount paid by the ap....