TaxTMI 
TaxTMI 
2018 (9) TMI 1717
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....was paid monthly remunerations in the form of commissions and was also reimbursed expenses incurred by them during the course of providing the said taxable services. However, the appellant is claiming threshold exemption of Rs. 4 lacs for the year 2005-06 and 2006-07 in terms of Notification No. 6/2005-ST dt. 01.03.2005. The Department based on the receipts shown in the Balance Sheet and P&L of the appellant company, issued Show Cause Notice stating that during the year 2005-06 the appellant crossed the threshold exemption of Rs. 4 lacs, thus the appellant is liable to pay total service tax of Rs. 52,132/-. The demands proposed in the Show Cause Notice have been confirmed in the Order-in-Original and the appellant did not succeed in his app....
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....e above, Ld. Advocate also submitted that the reimbursement is not liable to service tax since the relevant Rule 5 of the Service Tax (Determination of Value) Rules, 2006 has been struck down by the Delhi High Court in the case of Union of India Vs. Intercontinental Consultants and Technocrats Pvt. Ltd.- 2013 (29) S.T.R. 9 Del. which has been approved by the Hon'ble Supreme court in 2018 (10) G.S.T.L. 401 (S.C.). 4. Per contra, the Ld. DR supported the findings of the lower authorities, but however, accepted the law as laid down in case of M/s. Intercontinental Consultants and Technocrats Pvt. Ltd. (supra). 5.1 We have considered the rival contentions and have also gone through the judgments relied on by the Ld. Advocate. The Hon'ble ....
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.... the value of the services which are actually rendered, the value whereof is to be ascertained for the purpose of calculating the service tax payable thereupon. 24. In this hue, the expression 'such' occurring in Section 67 of the Act assumes importance. In other words, valuation of taxable services for charging service tax, the authorities are to find what is the gross amount charged for providing 'such' taxable services. As a fortiori, any other amount which is calculated not for providing such taxable service cannot a part of that valuation as that amount is not calculated for providing such 'taxable service'. That according to us is the plain meaning which is to be attached to Section 67 (unamended, i.e., prior to May 1, 2006) or aft....
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....tatutory provision the Rule or bye-law has to be ignored. The statutory provision has precedence and must be complied with." 27. The aforesaid principle is reiterated in Chenniappa Mudaliar holding that a rule which comes in conflict with the main enactment has to give way to the provisions of the Act. 28. It is also well established principle that Rules are framed for achieving the purpose behind the provisions of the Act, as held in Taj Mahal Hotel : "the Rules were meant only for the purpose of carrying out the provisions of the Act and they could not take away what was conferred by the Act or whittle down its effect." 29. In the present case, the aforesaid view gets strengthened from the manner in which the Legislature itsel....
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.... just a series of statements, such as one finds in a work of fiction/non-fiction or even in a judgment of a court of law. There is a technique required to draft a legislation as well as to understand a legislation. Former technique is known as legislative drafting and latter one is to be found in the various principles of "interpretation of statutes". Vis-a-vis ordinary prose, a legislation differs in its provenance, layout and features as also in the implication as to its meaning that arise by presumptions as to the intent of the maker thereof. 28. Of the various rules guiding how a legislation has to be interpreted, one established rule is that unless a contrary intention appears, a legislation is presumed not to be intended to have a ....
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.... obvious omission in a former legislation or to explain a former legislation. We need not note the cornucopia of case law available on the subject because aforesaid legal position clearly emerges from the various decisions and this legal position was conceded by the counsel for the parties. In any case, we shall refer to few judgments containing this dicta, a little later." 30. As a result, we do not find any merit in any of those appeals which are accordingly dismissed." 5.2 In the case on hand, the lower authorities have solely relied upon Rule 5 of the Service Tax Rules, 2006 to say that any expenditure or cost incurred by the service provider in the course of providing taxable service of such expenditure or cost shall be treated a....