TaxTMI 
TaxTMI 
2019 (3) TMI 189
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....of their international concern, M/s. Morarji International located in Italy for furthering their business. During the year 2006-07 appellants have made certain payments to their international concern on account of the business auxiliary services received from them. The respondent have paid service tax of Rs. 37,18,830/- or the marketing services sales commission etc. under the reversed charge mechanism, in terms of Section 66A of the Finance Act 1994. An audit of the respondent's units conducted. It appeared that the respondent have paid Rs. 6,20,30,000/- to their sister concern in Italy in foreign exchange; service tax Rs. 38,73,642/- escaped. A show cause notice was issued and was confirmed by the Joint-Commissioner Service Tax vide order....
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....ubmit any documentary evidence to sustain their claim that the said amount has been remitted on account of reimbursement of expenses; in terms of Rule 71 of Service Tax (determination of value) Rules 2006 the value of taxable services is equal actual consideration charged for the services provided and on the ground that the chargeability needs to be determined passed upon the correct classification of such expenses because for import or services the chargeability would depend as to which category particular expenses fall to and that if it is a category 3 service they are required to pay service tax in India. Learned Commissioner has not examined this aspect at all. 4. Learned Authorised Representative for the department has reiterated th....
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.... that the issue is Revenue neutral. He also submitted that the demand is time barred. 6. Heard both sides and perused the records of the case, the issue to be decided in this appeal is whether the service tax was payable on the payment made by the respondent to M/s. Morarji international, Italy on account of reimbursement of charges made by the said Morarji international in the year 2006-07 towards staff cost, insurance, travelling, conveyance, communication etc. we find that the issue is no longer res Integra. We find that as submitted by the learned Counsel for the appellant the issue has been decided by the Hon'ble Supreme Court and Delhi High Court in the case of Inter- Continental Consultants and Technocrats Pvt. Ltd. (supra). We fi....
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....h 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 after its amendment, with effect fr....
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....06-07 has shown a lump sum amount of payment by the respondent to their sister concern. No bifurcation was showed. No documentary proof for reimbursement of expenses has been provided. We find that learned Commissioner while accepting that the impugned payments are in the nature of reimbursement of expenses has not given any analytical bifurcation of the expenses under each head therefore while principally accepting that the reimbursement expenses do not form part all the payment for the taxable service we call that the owners to prove such payment along with the documentary evidence is squarely on the respondents. Therefore, we find that it will be in the interest of justice that the matter goes back to the original authority to calculate ....