TaxTMI 
TaxTMI 
2026 (7) TMI 160
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....7.03.2016 and 16.03.2016 passed by the Commissioner (Appeals), Central Excise & Service Tax, Chandigarh whereby the Commissioner (Appeals) has confirmed the demand of service tax along with interest and penalties. Since the issue involved in both the appeals is identical therefore both the appeals are taken up together for discussion and decision. Particulars of both the appeals are given herein below: Bant & Vikas B.S. Chandel Appeal No. ST/60015/2016 ST/60057/2016 Period 2007-08 to 2010-11 2007-08 to 2010-11 SCN dated 24.02.2012 (Extended Period prior to 25.10.2010) 24.02.2012 (Extended Period prior to 25.10.2010) Service tax Rs. 7,00,711/- Rs. 1,12,040/- Penalty Rs. 1,75,178/- ....
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....06 have been framed for such purposes, Rule 5(1) thereof provides for inclusion of expenditure or cost incurred by the service provider in the course of providing of taxable service in the value for the purpose of charging service tax. He further submits that Rule 5 has been held ultra vires of Sections 66 & 67 by the Hon'ble High Court of Delhi in the case of Intercontinental Consultants and Technocrats Private Limited Versus Union of India and others - 2013 (29) STR 9 (Del) wherein it has been held that imposing service tax on the reimbursable expenditures is not in the scheme of law and such a provision is ultra vires the Finance Act, 1994 itself. 4.1. Learned counsel further submits that against the decision of Hon'ble Delhi High Cou....
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.... present dispute pertains to interpretation of legal provision and therefore, suppression cannot be invoked in view of the judgment of [Tamil Nadu Housing Board v. CCE, Madras 1994 (74) ELT 9 (SC) and Uniworth Textiles Ltd. Vs. CCE, Raipur 2013(288) ELT 161 (SC)]. He further submits that the Department was fully aware of the issues in question as the issue was raised during the audit and the appellant has been filing the Returns regularly and it is the duty of the officers scrutinizing the returns to have checked the returns and issued SCN within time. He further submits that since the extended period of limitation cannot be invoked hence the penalty cannot be imposed as the demand pertains to amounts which would have been available as CENV....
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....nt to note that Rule 5(1) which provides for inclusion of expenditure or cost incurred by the service provider in the course of providing of taxable service has been held ultra vires of Sections 66 & 67 by the Hon'ble High Court of Delhi in the case of Intercontinental Consultants and Technocrats Private Limited (supra) which have been upheld by the Hon'ble Supreme Court by dismissing the appeal of the Department. It is pertinent to reproduce the relevant findings of the Hon'ble Supreme Court in para 24 holding as under: "24. In this hue, the expression 'such' occurring in Section 67 of the Act assumes importance. In other words, valuation of taxable services for charging service tax, the authorities are to find what is the gross a....