Reimbursements

(a) Includibility in taxable value — Appellant rendering
Business Auxiliary Service of promotion of loans of client bank — Service Tax
paid without including reimbursements — Service charges collected from bank as
consideration for Business Auxiliary Service constituting the gross amount
charged by service provider for such service — Impugned amounts being
reimbursement of salaries and infrastructural expenses, held as not to be
termed as amounts charged by service provider – Tribunal decisions and C.B.E.
& C. clarifications on non-taxability of reimbursement of expenses, applicable
— Impugned orders set aside — S. 67 of the Act.

[Malabar Management Services Pvt. Ltd. V. CST,
(2008) 9 STR 483 (Tri — Chennai)]

(b) Service Tax demanded on ‘other income’ and
‘write-backs’ — Impugned order holding that actual expenses reimbursed
eligible for abatement, but the same disallowed citing non-production of
documentary evidences — Expenditure incurred on behalf of client and not
directly relatable to service rendered, not liable to Service Tax —
Information and documents produced not examined in impugned order —
Expenditure details mentioned in books of accounts and charge on suppression
of facts not justified — Impugned order containing certain defects and hence,
set aside — Matter remanded for de novo adjudication — S. 67 and
Provision to S. 73 of the Act.

Reimbursement of expenses — It was held that Service Tax
can be charged on amount received for services rendered — Expenditure incurred
on behalf of client and not directly relatable to service rendered, not liable
to Service Tax — S. 67 of the Act.

[GAC Shipping (India) Pvt. Ltd. (2008) 9 STR 524
(Tri — Bang.)]