𝗖𝗘𝗦𝗧𝗔𝗧 𝗠𝘂𝗺𝗯𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗥𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗮𝗯𝗹𝗲 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: "Only the value of actual service provided is taxable; reimbursable expenses are not part of the taxable value for service tax purposes."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s ASP Ship Management (India) Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: Should reimbursable expenses received by the appellants be included in the taxable value for the purpose of service tax?

📝 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that only the actual service value is taxable, excluding reimbursable expenses, as they aren’t part of gross consideration. Citing Intercontinental Consultants case, it found Rule 5(1) invalid for taxing reimbursements beyond statutory limits. Thus, the order was set aside, and the appeal allowed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s ASP Ship Management (India) Pvt. Ltd. vs. Commissioner of Service Tax, Mumbai-V 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 85072 of 2016 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 10 August 2023 📜 This decision reinforces that only the direct value of services rendered should be taxable under service tax, excluding reimbursable expenses that are not part of the service consideration.