TaxTMI 
TaxTMI 
2025 (10) TMI 451
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....he Appellants are engaged in providing taxable service falling under category of 'Supply of Tangible Goods', wherein the Appellants were providing Generator on Hire/Rent basis to various Banks. The cost of diesel incurred in running of the generators was reimbursed to the Appellants by their customers. The Appellants have reported the entire receipts from the customers as "Operations from Revenue" and the same has been reported in the Income Tax Return [ITR] as well. 3. The common issue in both the appeals is that the cost of diesel reimbursable to them has been considered as part of the cost of service in terms of Rule 5 of Service Tax (Determination of Value) Rules, 2006. Ld. Counsel for the Appellants submitted that the said Rule has ....
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....s they had filed their ST-3 Returns within the statutory due dates, additionally the facts about the nature of services provided by the Appellants and that the diesel expenses are reimbursed to the them by their service recipient was known to the Department. Accordingly, they contended that in such a case, penalty under Section 78 of the Act does not survive. 5. Ld. Departmental Authorized Representative on the other hand strenuously argued that as per the provisions of sub-rule (1) of Rule 5 of the Service Tax (Determination of Value) Rules, 2006 and Explanation-2 appended to sub-rule (2) of Rule 5 ibid, supported the findings of the Ld. Commissioner (Appeals), Meerut and prayed that the appeals filed by the Appellants being devoid of a....
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....ed, the course of providing or agreeing to provide a taxable service, thus, only with effect from May 14, 2015, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging Service Tax. 8. I find that the Coordinate Bench of the Tribunal in the matter of the Principal Commissioner, Central Goods & Service Tax, Meerut vs. M/s Jaina Generator (Service Tax Appeal No.70578 of 2019) while considering the decision of the Hon'ble Supreme Court and relying on the decision of the Principal Bench at New Delhi in the matter of M/s Ganapati Associates Vs. Commr. of C.EX. & S.T., Jaipur-I-2015 (38) S.T.R. 493 (Tri.-Del.), has held that cost of diesel is not includable in the cost of the rental DG Sets. 9....
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.... Commissioner of Central Tax vs. Zee Media Corporation Ltd. [2018 (18) G.S.T.L. 32 (All.)], held that SCN itself shows that every detail was maintained by the assessee in usual course of business, the ingredients of proviso to Section 73(1) of the Finance Act, 1994, establishing any suppression of facts to evade payment of tax cannot be held to be present and invocation of extended period of limitation was not correct on the part of the Revenue. In another decision by the Coordinate Bench of the Tribunal in M/s T.S. Motors India Private Ltd. vs. Commissioner of CGST & Central Excise, Lucknow (Service Tax Appeal No.70377 of 2018) relying on the decision of the Hon'ble Supreme Court in Pushpam Pharmaceutical Co. vs. Commissioner of Central Ex....