2024 (11) TMI 1546

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....s from their clients. The Department was of the view that the appellant is required to pay the Service Tax on the gross amount received by them i.e. for the consultancy charges and all the reimbursement received by them. Show Cause Notice was issued for demanding Service Tax of Rs. 6,12,889/-. After due process, the Adjudicating Authority confirmed the demand. On appeal, the Commissioner (Appeals) dismissed the appeal. Being aggrieved, the appellant is before the Tribunal. 2. The Learned Consultant appearing on behalf of the appellant submits that during the period under consideration (2008-2009) and 2009-10, their case is squarely covered by the decision of Delhi High Court in the case of Intercontinental Consultants & Technocrats Pvt. ....

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....f Chapter V, which includes Section 66. This is a clear mandate that the value of taxable services for charging service tax has to be in consonance with Section 66 which levies a tax only on the taxable service and nothing else. There is thus inbuilt mechanism to ensure that only the taxable service shall be evaluated under the provisions of 67. Clause (i) of sub-section (1) of Section 67 provides that the value of the taxable service shall be the gross amount charged by the service provider "for such service". Reading Section 66 and Section 67(1)(i) together and harmoniously, it seems clear to us that in the valuation of the taxable service, nothing more and nothing less than the consideration paid as quid pro quo for the service can be br....

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....n of India, AIR 1972 SC 2427 :- "The fact that the rules framed under the Act have to be laid before each House of Parliament would not confer validity on a rule if it is made not in conformity with Section 40 of the Act." Thus Section 94(4) does not add any greater force to the Rules than what they ordinarily have as species of subordinate legislation. 7. Therefore, we set aside the confirmed demand pertaining to the Service Tax demand on reimbursable expenses. 8. However, we find force in the submission made by the Learned AR that demand is also inclusive of consultancy charges. At the Table given at Page 2 of the OIO, we find that for the year 2008-09, the appellant had rendered service to the extent of 9,12,000/-....