Order Date – 28 February 2023

Parties: M/s. Benchmark Consultants Vs The Commissioner of GST & Central Excise

Facts –

• The Appellant, M/s. Benchmark Consultants, was found to be not including the taxable value of the amounts of reimbursements received by them for their services.
• Show cause notice was issued during the period 2005-06 to 2009-10 proposing to demand service tax on the reimbursable amounts received by them along with interest and for imposing penalties.

Issue –

• Whether service tax can be demanded on reimbursable expenses?

Order –

• The Tribunal held that from the show cause itself it is clear that the demand is made for the non-inclusion of reimbursable expenses in the taxable value for discharge of service tax liability.
• The issue is settled in the case of UOI Vs Intercontinental Consultants and Technocrats by the Apex Court. Following the same, the demand cannot sustain and the appeal is allowed.