Pragati CNG Vs C.C.E. (CESTAT Ahmedabad)
Tribunal in the case of ICC Reality (India) Pvt. Ltd. vs Commr. 2013 (32) S.T.R. 427 (Tribunal), Hotel Lake view Ashok vs. CGST 2018 TIOL 2195 CESTAT-Mad and S.B. Developers Ltd. vs. Commissioner 2018 TIOL 1866 CESTAT-Del., it was held that electricity charges reimbursed to the service provider by the service recipient are not includable in gross value of renting of immovable property service. We find that the said principle is equally applicable in the instant case. The said principle has also been pronounced by Hon’ble Apex Court in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. 2018 (10) G.S.T.L 401 (SC). Accordingly, the appeal is allowed.”
From the above decision of this Tribunal, it can be seen that the electricity charges which is reimbursed on actual basis in terms of the contract is not includible in the gross value of service provided by the appellant to Gujarat Gas Company Limited.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved is that whether the Electricity Charges reimbursed to the appellant by the Service Recipient M/s. Gujarat Gas Company Limited for providing the service Namely Business Auxiliary Service is includible the gross value of output service.
2. Shri. Akshay Modi, Learned Chartered Accountant appearing on behalf of the appellant submits that it is conditional on the part of the appellant to provide the electricity as per contractual agreement the appellant is suppose to get the reimbursement of electricity charges from the service recipient M/s. Gujarat Gas Company Limited, therefore, this electricity charges reimbursed on actual basis shall not be part of gross value of the appellant’s output service. He relied upon the various judgments as follows:-
