TETRA PAK INDIA PVT. LTD. Vs. COMMISSIONER OF C. EX.
LAWS(CE)-2015-5-13
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on May 12,2015

Tetra Pak India Pvt. Ltd. Appellant
VERSUS
COMMISSIONER OF C. EX. Respondents




JUDGEMENT

M.V.RAVINDRAN,J - (1.)THIS appeal is directed against Order -in -Appeal No. P -III/VM/236/09/dated 5 -11 -2009. Heard both sides and perused the records.
(2.)On perusal of the records, we find that the issue involved in this case is regarding the service tax liability on an amounts which were reimbursed as Travelling expenses, Lodging and Boarding expenses incurred by the appellant's employees while undertaking official tour. Both the lower authorities have confirmed the demand of Service Tax of Rs. 1,41,581/ - with interest and also imposed penalties holding that the said tax liability arises even if the same is for reimbursement of the expenses. The period involved in this case is from April, 2006 to September, 2006. Both the lower authorities are in error in holding that the reimbursable amounts on which service tax liability has been confirmed is a consideration for the services rendered. On perusal of the order, we find that there is no dispute as to the fact that the amounts on which service tax liability is confirmed are reimbursable expenses incurred for travelling, lodging and boarding and hotel charges. Both the lower authorities have invoked the provisions of Rule 5(1) of the Service Tax (Determination of Value) Rule, 2006. We find that the very same provision has been struck down by the Hon'ble High Court of Delhi in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. v. Union of India, 2013 (29) S.T.R. 9 (Del.). Since, the provisions of Rule 5(1) of the Service Tax (Determination of Value) Rule, 2006 has been struck down, we find no merits in the arguments raised by the Ld. AR, accordingly we set aside the impugned order and allow the appeal with consequential relief, if any.
(Pronounced & Dictated in Court)

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