2019 (1) TMI 1430

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....ial) Shri. J. Shankar Raman, Advocate for the Appellant Shri. B. Balamurugan, AC (AR) for the Respondent ORDER Per P. Dinesha : The appellant is engaged in providing services under the category of Architect Service and Consulting Engineer Service and is also registered with the Service Tax Department. 2. Brief facts are that the lower authority sought to demand service tax on "vi....

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....ement of expenses has been held to be a non-taxable entity and relied on the recent decision of the Hon'ble Apex Court in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. - 2018 (10) G.S.T.L. 401 (S.C.) to buttress his argument that for the period involved in the above appeal, the reimbursable expenditure or cost would not form part of the valuation of taxable services. He drew o....

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....mphasised that Rule 5 of the Rules went much beyond the mandate of Section 67. We, therefore, find that High Court was right in interpreting Sections 66 and 67 to say that in the valuation of taxable service, the value of taxable service shall be the gross amount charged by the service provider 'for such service' and the valuation of tax service cannot be anything more or less than the considerati....

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....ion of taxable services for charging service tax. Though, it was not argued by the Learned Counsel for the Department that Section 67 is a declaratory provision, nor could it be argued so, as we find that this is a substantive change brought about with the amendment to Section 67 and, therefore, has to be prospective in nature. ..." 3.2 Ld. Advocate submitted that the assessee would be acceptin....