Service Tax Demand on Reimbursed Expenditure is beyond Section 67 & Unsustainable

ASP Ship Management (India) Pvt Ltd Vs Commissioner of Service Tax (CESTAT Mumbai)

CESTAT Mumbai held that demand of service tax on reimbursement of expenditure by the ship owner goes beyond the mandate of Section 67 the Finance Act, 1994. Accordingly, demand of service tax confirmed u/r 5 doesn’t survive as rule 5 itself has been held to be ultra vires of section 67.

Facts- The appellants are engaged in rendering “ship management services” and are registered under

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