TaxTMI 
TaxTMI 
2018 (2) TMI 1050
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....ners, posters and other miscellaneous support activities of business for various clients. The details of such activities were enumerated in the appeal records. They have been paying Service Tax on the considerations received for these activities under the category of event management service. The records of the appellant were audited by the officers in March and June of 2006. On completion of audit, the Revenue entertained a view that the appellants did not discharge Service Tax on full taxable value and there was a short payment of Service Tax for the period 01.10.2002 to 31.03.2007. The main dispute on valuation is with reference to non-inclusion of certain considerations received by the appellants, which they claimed to the reimbursement....
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....authority to the effect that all the consideration irrespective of the nature should be considered for gross value under Section 67 of the Act. It is the submission of the ld. Counsel that by now, it is a well settled legal position that an expense which normally should have been made by the client, but met by the appellant and later reimbursed on actual basis by the client cannot form part of the taxable value at the hands of the appellant. He relied on various decided cases to support the said contention. The demand and penalty was also contested on limitation as well as non-application of provisions of Section 78. He drew our attention specifically to para 28.4 of the impugned order, wherein it is categorically recorded that even when th....
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.... liability itself. Even before us, the ld. Counsel strongly pleaded that the various activities undertaken by them will not be at all covered under event management service. We have perused the list of such activities submitted in the appeal. The appellants are engaged in price distribution through Call Centre operation on behalf of the clients. The clients are selling various consumer goods. Some price system was announced and the winners of the price were notified and given the price through the assistance of the appellant. For which the appellants are running a Call Centre. Similarly, the appellants are assisting clients like Intel, in spreading computer awareness and helping organizing various programmes for computer literacy. The appel....
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....ion of reimbursement expenditure shown in their books of accounts. The submissions of the appellants is that various expenses like travel and stay of staff, certain materials for distribution are all incurred on behalf of the clients and the actual cost are reimbursed. We have perused the sample/ illustrative invoices raised by the appellant. These are either indicating the nature of goods or claims made by the appellant on the client which are under the category of reimbursable expenditure or sale of goods during the course of providing services. In fact, the appellants have made a detailed list of such expenditure and submitted in their letter dated 07.09.2006 itself to the Audit Officers. 9. The original authority relying on the provi....
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.... cast upon it by the Legislature. On such premise, the original authority imposed a penalty under Section 78. We find the findings are self- contradictory. Section 78 penalty will arise, when there is a malfide act and for penalty under Section 78, the ingredients mentioned therein are to be fulfilled. Mere failure to pay tax or failure to comply with any provisions without any intention to evade tax will not attract Section 78. Accordingly, this aspect of the findings is not sustainable. 12. In view of the above discussion and analysis, we find it fit and proper to set aside the impugned order and remand the matter to the original authority for decision on the claim of the appellant regarding correct classification as well as exclusion ....