Service Tax Not Applicable on Government Grants for Soil Conservation and Land Reclamation Services, Funds Deemed Reimbursements.

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....Levy of service tax - activity of soil conservation and land reclamation - the entire amount received by the appellant from the government in the shape of grant is in the nature of reimbursement i.e. to say the actual expenditure incurred for the provision of the service is reimbursed by the Government of Gujarat. For that reason also the amount paid by the Government to the appellant cannot be taxed as does not fall within the definition of consideration for service. - AT....