2020 (1) TMI 986

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....Accountant Present For the Respondent: Shri Gobind Jha, Authorised Representative ORDER RAJU This appeal has been filed by M/s VV Brothers against order of Commissioner (Appeals) confirming the demand of Service Tax. 2. Learned Chartered Accountant for the appellant pointed out that they are engaged in providing services to M/s Gujarat Gas. They have entered into an agreement with G....

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.... will have to be provided for this purpose." 2.1. The appellant pointed out that they were paying Service tax for the fixed charges received by them for provision of service, however, they were not including the value of the electricity charges recovered as reimbursements from Gujarat Gas for the purpose of payment of Service Tax. 2.2 Learned Counsel argued that the issue involved in the pre....

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....rised Representative relied on the impugned order. He argued that in the case of decision of larger bench in the case of Sri Bhagwathy Traders 2011 (24) S.T.R. 290 (Tri-LB) which has been held that only when the amount is spent in the capacity of pure agent, the same can be excluded from the assessable value. He argued that since in the instant case, amount is not paid in the capacity of pure agen....

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....icular outlet shall be borne by GGCL. An independent electricity meter will have to be provided for this purpose." It is seen that the contract puts the liability of expenditure of Service Tax on Gujarat Gas and they have also placed a separate meter for assessment of the actual electricity consumed. We find that the issue is squarely covered by the decision of this Tribunal in the case of Kira....