2018 (6) TMI 789

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.... the Appellant Shri R. Subramanian, AC (AR) for the Respondent ORDER Per Bench Brief facts are that the appellants are registered with the Service Tax Department under the category of "Manpower Recruitment and Supply Agency Services". During the course of audit, it was inter alia noticed that the appellants had not paid service tax on amounts received towards reimbursable expenses duri....

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....ses towards tea expense during the period March 2007 and June 2007 and also for difference in the value shown in the Profit and Loss account and ST-3 returns for the period 2005 - 06 and 2006 - 07) thereby leading to short payment of service tax. She submitted that major part of the demand is in the nature of reimbursable expenses such as PF and ESI contributions. The difference in figures in P&L ....

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....d only with effect from 19.4.2006. The same has been struck down as ultra vires to section 67 of the Finance Act in the case of Intercontinental Consultants and Technocrats P. Ltd. Vs. Union of India - 2013 (29) STR 9 (Del.). That therefore the allegation that the reimbursable expenses are to be included in the taxable value would not sustain She also relied upon the decision of the jurisdictional....

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....te that the appellant has made such payments on behalf of the client M/s. Subiksha Trading Services. In the contract, it has been stated that while paying wages, the appellant has to deduct PF / ESI etc. as applicable and remit the same to the authorities concerned. Merely because the liability to deduct is cast upon the appellant, it cannot be said that these expenses are not reimbursable expense....