TaxTMI 
TaxTMI 
2017 (9) TMI 1004
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.... of the appellant, the Revenue entertained a view that the appellants did not correctly discharge service tax liability during the period October 2003 to March 2007. Proceedings initiated against the appellant by way of show cause notice concluded in the issue of present impugned order. The impugned order held that the appellants provided event management service to various clients and received considerations therefor. He disallowed the claim of the appellant to calculate the taxable value by considering various receipts as reimbursable expenses. The appellants also claimed that their services are not liable to taxed under event management, but under business auxiliary/support/exhibition service. It was claimed that by mistake the appellant....
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....nd now raised is based on records and documents maintained by the appellant and various contracts entered into with the clients. Regarding the reimbursable expenses, the appellant acted in a bonafide manner and accordingly there can be no question of penalty in this case. 3. The learned AR supported the findings of the lower authority. She submitted that a perusal of various contracts entered into by the appellant will clearly reveal the nature of activities undertaken by them. There is no reimbursable expenditure on actual basis, identified for supply of any goods or materials or procurement of services for and on behalf of the client. The case laws relied upon by the appellant are not applicable to the facts of the present case. 4. We h....
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....le in their case. This circular was issued in the context of a firm/person who was undertaking activities of organizing exhibitions and inviting trade and industries to participate. It was clarified that providing of space in addition to certain facilities like furniture, cabins, security, electricity etc. will not be consider as event management. It was clarified that such person who are providing only space with furniture etc. are not providing the service of event management. Here I find the M/s IC is not organizing the exhibition soliciting the participation of trade and industry. They have been hired by the sponsors like Godrej SARA Lee or MUL to manage the business event. 24.6 It was also contended that a person should undertaken al....
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....d in the light of definition given under the Act. 24.8 In view of the above I hold that the activity undertaken by M/s IC are taxable under the category of Event Management Service". 5. On careful consideration of the scope of various work orders, we are in agreement with the above findings of the Original Authority. As noted earlier that the main issue in the appeal is with reference to the claim of the appellant regarding exclusion of reimbursement expenses incurred by them. We note that exclusion of reimbursement expenditure should be based on pre-arrangement and on actual basis without any mark up. The appellants should have incurred expenditure and got the same reimbursed on actual basis, with supporting document, from the clients. ....