2018 (9) TMI 576 - AT - Service Tax

Security Agency Service - whether the appellant who is a co-operative society are taxable under Security Agency Service ? - service tax for the period from 01.11.2004 to 30.11.06 - Held that - The matter need no further consideration in view of the settled law till date that the activity of the appellant was taxable under Section 65(105)(k) read with section 65 (94) of the Finance Act, 1994 - the issue of limitation has also been adjudicated by the Tribunal holding the show cause notice as being beyond time - demand for normal period of one year confirmed - appeal allowed in part.

Summary

Issues:
1. Whether the appellant, a cooperative society, is taxable under 'Security Agency Service'.
2. Whether the demand for service tax for the period from 01.11.2004 to 30.11.06 is valid.
3. Whether the Tribunal's order dated 08.05.2014 correctly held the appellant's activity as taxable and limited the demand to one year.
4. Whether the High Court's remittance of the matter required the Tribunal to reconsider the issue of limitation.

Analysis:
1. The appeal was remitted by the High Court of Rajasthan to determine if the appellant, a cooperative society, falls under the 'Security Agency Service' for the period in question. The original adjudicating authority confirmed the demand for service tax, which was challenged before the Tribunal.

2. The Tribunal's order dated 08.05.2014 upheld the taxability of the appellant's activity under specific sections of the Finance Act and limited the demand to a normal period of one year. This order was further contested before the High Court, leading to the remittance of the matter for reconsideration, including the issue of limitation.

3. During the hearing, the appellant argued for following the Tribunal's previous order, emphasizing that the issue of limitation was already addressed. The Department acknowledged that previous judgments favored the appellant regarding the taxable service and that the limitation issue had been previously settled by the Tribunal.

4. After reviewing the Tribunal's order, the High Court's remittance, and the arguments presented, the Tribunal concluded that the appellant's activity was indeed taxable under the relevant sections of the Finance Act. The Tribunal also confirmed that the issue of limitation had been resolved previously, holding the show cause notice as beyond the time limit and upholding the demand for the normal one-year period. Therefore, the Tribunal partly allowed the appeal, finding no reason to alter the levy or modify the findings on the plea of limitation.