2025 (9) TMI 1723

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....der-in-Original and dismissed the appeal of the appellant. 2. Briefly the facts of the present case are that as per the Department, the appellant has received Rs. 12,70,175/- as reimbursement of travelling expenses incurred while providing taxable services during the period 2009-2010 which are liable to be included in taxable value of services provided by the appellant and service tax amounting to Rs. 1,30,828/- has been short paid by the appellant by not including the said re-imbursement expenses in taxable value. Further, as per the allegation of the department, the appellant deliberately suppressed the material fact from the department to evade service tax. On these allegations, a show cause notice dated 17.05.2012 was issued which wa....

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....at the present demand has been confirmed by invoking the extended period of limitation alleging suppression of material fact by the appellant. He further submits that the department has failed to prove that the appellant had the knowledge regarding the liability of service tax and he has intentionally suppressed the material facts. He further submits that no positive act in suppressing the fact has been alleged in the show cause notice and proved by the department. Learned counsel further submits that in identical situation the learned commissioner has dropped the demand in case of M/s Data Max Marketing Consultant which is the sister concern of the appellant and further the department has not challenged the said order. 5. On the other h....

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....that the appellant could not produced any evidence or document to show that these are 'reimbursed expenses', is not a valid finding. It is for the department who alleged to prove the same with evidence; it is not for the appellant to disprove the same. The Id. AR while accepting the contention of the appellant's Counsel that reimbursed expenses are not includable in the assessable value in view of the decision of the Hon'ble Apex Court in the case of Intercontinental Consultants (supra), has submitted that in view of the decision of the Larger Bench of the Tribunal in the case of Sri Bhagavathy Traders (supra), It is to be examined as to the nature of the reimbursed expenses and only when they qualify as such, their includib....