2026 (7) TMI 650

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....d by the appellant M/s. Hindustan Newsprint Employees Co-operative Bank Ltd. against Order-in-Appeal No. 389 & 390-15-16 dated 21.03.2016 passed by the Commissioner (Appeals-I), Cochin. 2. The appellants were rendering services under the category of Manpower Recruitment or Supply Agency Service and paid service tax on the services rendered by them; however, the Revenue alleging that the service tax had to be discharged on the entire gross amount including the workers' wages and other benefits that were received by the appellant. Accordingly, the show-cause notice was issued and the original authority confirmed the service tax demand which was upheld by the Commissioner (Appeals) in the impugned order on the ground that there is no statut....

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....ts Pvt. Ltd. (supra) wherein the Hon'ble Supreme Court had categorically held that reimbursable amounts cannot form part of the gross value prior to 2015. The relevant paras are extracted below: "29. .............Realising that Section 67, dealing with valuation of taxable services, does not include reimbursable expenses for providing such service, the Legislature amended by Finance Act, 2015 with effect from May 14, 2015, whereby Clause (a) which deals with 'consideration' is suitably amended to include reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service. Thus, only with effect from May 14, 2015, by virtue of provisions of Section 67 its....

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....f the maker thereof. 28. Of the various rules guiding how a legislation has to be interpreted, one established rule is that unless a contrary intention appears, a legislation is presumed not to be intended to have a retrospective operation. The idea behind the rule is that a current law should govern current activities. Law passed today cannot apply to the events of the past. If we do something today, we do it keeping in view the law of today and in force and not tomorrow's backward adjustment of it. Our belief in the nature of the law is founded on the bedrock that every human being is entitled to arrange his affairs by relying on the existing law and should not find that his plans have been retrospectively upset. This principle o....