Service tax on Fuel charges

Yes. This is because of the Service Tax Valuation Rules in which it is clearly mentioned in Rule 5 that "(1) Where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax on the said service." The fuel charges are consumed by the service provider and do not fulfill the criteria of pure agent, therefore will be exigible to service tax.