2008 (9) TMI 123

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....s Pvt. Ltd. are engaged in the activities of 'Management Consultancy Service'. In April 2004, they had taken over the operations of two proprietary firms namely M/s. Rolex Logistics International and also M/s. Rolex Computer Services. Revenue proceeded against the appellants on the ground that they had suppressed the value of the taxable service carried by them and consequently, they had evaded the Service Tax during the relevant period. Statement of Shri O.S. Rajan Paul, Corporate Manager was recorded. Various documents were seized. The entire case was based on the investigations by the Director General of Central Excise Intelligence, Bangalore Unit. Proceedings were initiated and the learned Adjudicating Authority confirmed the demand of ....

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....td. v. C.S.T. - 2008 (9) S.T.R. 483 (Tribunal) - 2008 (12) V.S.T. 133 (T) Held, amount received as reimbursement of staff salaries and infrastructural expenses not includible in value of taxable services. 5.   Basti Sugar Mills Co. Ltd. v. C.C.E. - 2007 (7) S.T.R. 431 (T)   Held, the definition of 'Management Consultant' makes it clear that what was envisaged from a consultant is advisory services and not actual performance of management function and that an ocean separates a Manager from a Management Consultant, a performer from an advisor or a coach. 6.   Jindal Vijayanagar Steel Ltd. v. C.C.E. - 2005 (192) E.L.T. 415.   Held that extended period was not invocable especially as fact of ....

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....hese expenditure are all for different purposes. The Service Tax liability in terms of Section 67 is only on the gross amount received towards the services rendered. If the service provider in the course of rendering service has to make certain payments on behalf of the service receiver, they are known as reimbursements. The reimbursements are actually not towards the service rendered but they are only towards other expenditure incurred on behalf of the client by the service provider. Normally, the service provider incurs these expenditures in the interest of quicker service. Suppose the service provider has to first receive the money and then render the service, it would cause lot of delay. Therefore, while providing service to the client,....