Service Tax Demand on Reimbursements for Mall Maintenance Consumables Overturned; No Evidence of Tax Evasion Found.

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....The appellants, service providers of Mall Maintenance and Repair (MMR) services, were subjected to service tax demand on the reimbursements received towards expenses incurred for purchasing consumables used in rendering MMR services. The key points are: The agreements expressly stated that consumables would be directly purchased by the appellants on behalf of clients, and the cost would be recovered without any profit element. The reimbursed cost of consumables should not form part of the taxable value of MMR services provided. The consideration charged is only the management fee, on which service tax has been duly paid. The expenses incurred for procuring consumables, reimbursed by service recipients, are not towards any service provided b.........