𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗥𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗮𝗯𝗹𝗲 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 📢 𝗧𝗵𝗲 𝗖𝗼𝘂𝗿𝘁 𝗵𝗲𝗹𝗱: Service tax is not leviable on reimbursable expenses. Appeal allowed.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: M/s. Benchmark Consultants 𝗜𝘀𝘀𝘂𝗲: M/s. Benchmark Consultants faced a show cause notice for not including reimbursable expenses in taxable value for service tax liability from 2005-06 to 2009-10, with proposed tax demand, interest, and penalties.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal, citing the Apex Court's decision in Union of India vs. Intercontinental Consultants and Technocrats, reaffirmed that reimbursable expenses are not subject to service tax. It held that demands for service tax on such expenses are unsustainable, aligning with established legal precedent..

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Benchmark Consultants vs. The Commissioner of GST & Central Excise 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 28 February 2023 📜 This ruling reaffirms the principle that reimbursable expenses are not subject to service tax, providing clarity for service providers in determining their taxable value.