2019 (2) TMI 1564 – CESTAT CHENNAI – TMI – Valuation – inclusion of reimbursable expenses in assessable value – Held that:- The appellant has to furnish necessary documents to establish that reimbursable expenses have been included in the taxable value. For this limited purpose, the matter requires to be remanded to the adjudicating authority who shall consider whether any reimbursable expenses are to be excluded from the taxable value that has been arrived by the adjudicating authority.
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Penalties – Held that:- The appellants were under bonafide belief that the said activity did not fall under BAS. From the litigations taken up by the appellant, the said contention requires to be considered – penalties not warranted and is set aside.
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D. Naveena submitted that they are accepting that their activity falls under BAS. However, she submitted that the taxable value as arrived by department would include certain reimbursable expenses which are in the nature of wages and remuneration paid to the employees during the relevant period. She relied upon the decision in Union of India Vs. Intercontinental Consultants and Technocrats Pvt. Ltd. – 2018 (10) GSTL 401 (SC) and argued that reimbursable expenses cannot be included in the taxable value. She therefore pleaded that the appellant may be given a chance to furnish evidence with regard to the reimbursable expenses. The second argument was with regard to the penalties imposed. She submitted that the adjudicating authority has impo
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nses included in the taxable value. Therefore she submitted that the demand and penalties imposed are legal and proper. 4. Heard both sides. 5. The appellant is now contesting the demand with regard to the alleged reimbursable expenses that have been included in the taxable value. Nothing is forthcoming with regard to such expenses in the orders placed before us. The appellant has to furnish necessary documents to establish that reimbursable expenses have been included in the taxable value. For this limited purpose, we are of the opinion that the matter requires to be remanded to the adjudicating authority who shall consider whether any reimbursable expenses are to be excluded from the taxable value that has been arrived by the adjudicating
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