Relief for Indian Oil: CESTAT Holds No Service Tax Payable on Reimbursable Expenses Incurred for CISF Security Services

CESTAT ruled that Indian Oil Corporation (IOCL) is not liable to pay service tax on reimbursable expenses incurred for CISF security services, as these do not form part of the taxable value. The Tribunal held that expenses strictly passed on, without adding service consideration, do not attract service tax. This judgment provides clarity for government undertakings and PSUs in managing third-party reimbursable expenses without tax liability.:contentReference[oaicite:1]{index=1}