The assessee was registered with the Service Tax Department for providing the taxable service under the category of event management.
He received the reimbursable expenses from the client on actual basis.The department held that such amount was includible in the gross value for the purpose of payment of service tax.
The assessee filed an appeal before the Commissioner (Appeals) who allowed the appeal in favour of revenue. Again, it filed an appeal in the Tribunal.
The Tribunal held that the reimbursable expenses cannot be considered as amount charged ‘for providing the taxable service’. The assessee was entitled for receiving the actual expenses incurred by it. Therefore, such expenses could not be included in the gross value for the purpose of payment of service tax, as such amount was not towards the consideration received for providing the taxable service.
Citation: [2018] 94 taxmann.com 170 (New Delhi – CESTAT)