2016 (12) TMI 605

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....vinder Narain, Advocate for the Applicants Shri Ranjan Khanna, DR for the Respondent Per Archana Wadhwa:                 The appellant is in the business of operating Hotels under its various brands. Any entrepreneur interested in running a Hotel under Fortune banner signs an "Operating Agreement" with Fortune Park....

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....the Appellant. Though, they continue to be on the rolls of the Appellant company, but in fact work for the hotel in the actual day-to-day operation and running of the hotel. This also ensures that proper standards are maintained in the actual operation of the Hotel so as to protect the valuable brand of FPHL under which the hotel is run. The 'salaries' and 'expenses' of such officers are continued....

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....mployees being sent by the appellant to their hotels is being paid by the appellant directly to the employee and the same is being reimbursed by the hotel without any markup. As such in terms of the law declared by the High Court of Delhi such reimbursable expenses collected by the services provider from the service recipient cannot be held to be a part of the value of the services being provided ....