2018 (2) TMI 403

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....am, AC (AR) for the Respondent ORDER Per: Bench                  M/s. Jerry & Co. which was a partnership concern was issued a show cause notice dated 5.4.2007 for short payment of service tax under the category of Business Auxiliary Service alleging that they had not included the reimbursable expenses while d....

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....with interest thereon and imposed penalty of Rs. 3,40,000/- under section 78 of the Finance Act, 1994. Hence this appeal. 3. On behalf of appellant, ld. consultant Shri Anand submitted that the earlier show cause notice was issued to the partnership concern and after dissolution of the partnership firm, the Commissioner has issued a show cause notice to the firm which is not in existence. That,....

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....reimbursement, the client, that is M/s. Jerry and Co., are not liable to make payment to the third party and therefore condition 3 of Rule 5(2) is not satisfied. That consequently, the reimbursable expenses are includible in the taxable value of services. That Commissioner has rightly confirmed the demand. With regard to issuing show cause notice only to a single partner, he submitted that the Com....

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....luded in the taxable value and only expenses incurred by pure agent has to be excluded. The facts make it clear that the amount impugned is reimbursable expenses on which service tax has been demanded. The issue whether reimbursable expenses are to be included in the taxable value or not is settled by the decision in the cases of Intercontinental Consultants and Technocrats Pvt. Ltd. Vs. Union of ....