TaxTMI 
TaxTMI 
2019 (1) TMI 437
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....pellants are engaged in the business of sales of Light Motor Vehicles and Spares and Servicing/Repair of Light Motor Vehicles of "TOYOTA" at their authorized service station. The dealers of Light Motor Vehicles normally provide free services for the said vehicles sold during a warranty period. The expenses incurred for providing free services are reimbursed by the manufacturers. The appellant has paid service tax on the labour charges portion alone and not paid service tax on the portion of material cost reimbursed. 2.2 Show Cause Notices dated 19.03.2010 and 22.09.2010 were issued inter alia alleging that the appellant had not correctly adopted the value of taxable services provided by them as they had failed to include the money value ....
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....ed the present appeals. 3. Today when the matter came up for hearing, Ld. Advocate Shri. N. Anand appeared on behalf of the assessee/appellant while Ld. DC (AR) Ms. T. Usha Devi appeared on behalf of the Revenue/respondent. 4. We have heard the rival contentions and perused the records. 5. Right from the issuance of the Show Cause Notices, the Revenue itself is harping on the fact that the appellant was reimbursed the expenses, which were required to be taxed. The same was confirmed in the Orders-in-Original as well as the impugned Orders. We find that the issue as to taxability of the reimbursible expenses has finally been laid to rest by the Hon'ble Supreme Court in the case of Union of India Vs. Intercontinental Consultants and ....
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....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 after its amendment, with effect from, May 1, 2006. Once this interpretation is to be ....
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....sion 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 itself acted. Realising that Section 67, dealing with valuation of taxable s....
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....ion/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 retrospective operation. The idea behind the rule is that a....