Service Tax on Reimbursements Excluded Under Rule 5; Penalties Varied for Delayed Payments and Registration Failures

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....The demand of service tax on 'Other Expenses' and 'Extra Hour Service Charges' for 2009-10 to 2012-13 was set aside, as incidental reimbursements are excluded from taxable value under Rule 5 of the Service Tax (Determination of Value) Rules, 2006, consistent with the Supreme Court's ruling that such reimbursements are taxable only post-May 14, 2015. Interest on delayed service tax payment for renting of immovable property services was also quashed due to bona fide dispute and judicial pronouncements negating levy during the relevant period. However, interest on delayed payment for Maintenance or Repair Services was upheld due to non-submission by the appellant. The extended limitation period was not invoked owing to absence of fraud or supp.........