No ST on Reimbursement of expenses on behalf of service recipients

Awasthi Brothers Vs Principal Commissioner, Customs, Central Excise & Service Tax (CESTAT Delhi) The issue under consideration is whether expenses received as reimbursement of expenses made on behalf of service recipients can form part of the assessable value and service tax will be applicable on it? In the present case, the internal audit link of the Department conducted an audit of statutory records of the appellant and formed a view that appellant adopted a novel modus operandi by which it bifurcated the amount received by it from various service recipients under two different category ...