TaxTMI 
TaxTMI 
2023 (1) TMI 1470
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....providing taxable services under the head of construction and other services. For provision of such services, the appellants were initially registered with the Service Tax department w.e.f. September, 2004 and subsequently, obtained the centralized registration w.e.f. May, 2007. The appellants incur certain expenditure such as insurance premium, advance tax payment, stamp paper/duty, hotel expenses etc. on behalf of their group companies. The said expenses do not relate to any supplies made to the appellants. Incurrence of such expenses were used to be reimbursed by the group companies at actual. The appellants also share cost of common expenditure that has been incurred by them, with their group companies in accordance with company's group....
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....021 dated 24.09.2021 had set aside the adjudication order and allowed the appeals in favour of the appellants. 1.4 In continuation to the earlier show cause proceedings (supra), the department had issued another SCN being No. 10/2017-18/Commr/CGST/ NN dated 09.03.2018, proposing for recovery of service tax demand for the period 01.04.2015 to 31.03.2017. The said SCN was adjudicated by Commissioner, CGST & Central Excise, Navi Mumbai vide Order-in-Original No. 83/CGST-M/Commr/KV/2018-19 dated 30.03.2019 (for short, referred to as 'the impugned order'), in confirming service tax demand of Rs. 11,71,17,556/- along with interest. Besides, the impugned order has also imposed penalties of Rs. 1,17,11,756/- and Rs. 10,000/- under Section 76 ibi....
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....provided or to be provided. The said explanation clause, providing the meaning of the phrase 'consideration' was substituted by the Finance Act, 2015 (20 of 2015), dated 14.05.2015, as under: "Explanation: for the purpose of this section,-- (a) "consideration" includes- (i) any amount that is payable for the taxable services provided or to be provided; (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed; (iii) any amount retained by the lottery distributor or selling agent from gross sale amount of lottery ticke....
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...., the original authority has stated that the act of sourcing of the service for the group companies would be categorized under 'business support service', but has not dealt with the vital aspect regarding the manner of provision of a service, that too a taxable service. Rather, the facts of the case indicate that the mode of operation undertaken by the appellants in making payment for the services and getting the same reimbursed are not for provision of any service, but are only reimbursement for the services procured for their group companies. Thus, the reimbursement of the cost/expenses incurred by the appellants as per actual, cannot be regarded as consideration, flowing to the appellants towards the taxable services provided by them.....