2024 (12) TMI 1182

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....ated 29.04.2022. By the impugned order, demand on reimbursible expense incurred by the petitioner for the following periods have been confirmed:- Sl.No. Date SCN/SOD No. Period Amount 1. 13.03.2013 30/2013 April 2011 to September 2011 Rs.12,85,156/- 2. 10.10.2013 290/2012 October 2011 to June 2012 Rs.22,38,418/- 3. 13.10.2014 302/2014 July 2012 to March 2013 Rs.47,21,778/- 4. 01.04.2015 24/2015 April 2013 to September 2014 Rs.87,23,838/- 5. 11.10.2017 05/2017 October 2014 to June 2017 Rs.6,65,25,534/- 3.At the time of admission of this writ petition, this Court had taken note of the decision of the Hon'ble Supreme Court in Union of India Vs. M/s.Intercontinental Consultants and Technocrats Pvt. Ltd., [2018....

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.... May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax. Though, it was not argued by the learned counsel for the Department that Section 67 is a declaratory provision, nor could it be argued so, as we find that this is a substantive change brought about with the amendment to Section 67 and, therefore, has to be prospective in nature. On this aspect of the matter, we may usefully refer to the Constitution Bench judgment in the case of Commissioner of Income Tax (Central)-I, New Delhi v. Vatika Township Private Limited wherein it was observed as under: "27. A legislation, be it a statutory Act or a statutory rule or a s....

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....ospectively upset. This principle of law is known as lex prospicit non respicit: law looks forward not backward. As was observed in Phillips v. Eyre [(1870) LR 6 QB 1], a retrospective legislation is contrary to the general principle that legislation by which the conduct of mankind is to be regulated when introduced for the first time to deal with future acts ought not to change the character of past transactions carried on upon the faith of the then existing law. 29. The obvious basis of the principle against retrospectivity is the principle of "fairness", which must be the basis of every legal rule as was observed in L'Office Cherifien des Phosphates v. Yamashita-Shinnihon Steamship Co. Ltd. Thus, legislations which modified accrued....