Service Tax Demand Set Aside as Reimbursement of Expenses Is Not Consideration: CESTAT Mumbai

Hindustan Construction Company Ltd. Vs Commissioner of Central Goods and Service Tax (CESTAT Mumbai) The appeal before the CESTAT Mumbai concerned the levy of service tax on amounts recovered by the appellant from its group companies through debit notes for the period 01.04.2015 to 31.03.2017. The appellant, engaged in providing construction and related services, incurred various expenses such as insurance, taxes, stamp duty, and other costs on behalf of its group companies. These expenses were reimbursed at actual cost, and the appellant did not pay service tax, considering them as mere reimb...