2017 (8) TMI 549

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....for appellant Shri. M.K. Sarangi, Addl. Comm. (AR), for respondent ORDER Per: Ramesh Nair 1. The appellant is engaged in providing "Event Management Service". The case of the department is that the appellant are collecting additional amount on account of various expenses in the name of reimbursement of certain expenses and claimed the said reimbursement is not liable to service tax. Th....

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....icating authority has not granted any hearing. Though the date of hearing was fixed on 01/08/2012 but for which the appellant sought an adjournment which was not granted and exparte order was passed. On merit he submits that there are various expenses which was borne by the appellant on behalf of their clients which was recovered by the appellant as reimbursement of actual expenses incurred. The a....

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....rds the merit of the case, he submits that as per the Larger Bench judgement in the case of Sri Bhagvathy Traders - 2011 (24) STR 290 (Tri-LB), the so called reimbursement is not allowed to be deducted from the gross value of the service and the same is chargeable to the service tax. He also placed reliance on the judgement in the case of Krishna Kumar - 2014 (33) STR 60 (Tri-Del). 4. We have c....

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....ng services partly as cost of services and the rest as reimbursable expenses". 4.1 From the above observation, it is clear that on the basis of the fact it has to be ascertained that as per the nature of service provided by the assesee what are the costs which is required in usual course of providing the service. Thus, the cost has to be included in the gross value of the service. It is very ob....