2007 (5) TMI 306 - AT - Service Tax

Security agency services- SCN was issued to the appellant alleging that it had rendered security service during the period October, 1999 to March, 2004 and that security service was liable to service tax. Demand of Rs. 8 lakh was based on appellant s bills/invoices to various parties for the service rendered during this period. Another demand of over Rs. 5 lakh was raised on the ground that the appellant had rendered service, though invoices covering those clients are not available. Held that- order in relation to unavailable bills is set-aside and the case is remanded to the original authority.

Summary

Issues:
1. Allegation of providing security service liable to service tax.
2. Demand based on available and unavailable invoices.
3. Remand order for reevaluation of demand related to available invoices.
4. Confirmation of demand related to unavailable invoices.
5. Appeal for reconsideration of demand related to unavailable invoices.

Analysis:
The judgment by the Appellate Tribunal CESTAT, NEW DELHI involved the issue of an allegation against the Appellant for providing security services liable to service tax. The case revolved around a Show-Cause Notice (SCN) issued to the Appellant, claiming that security services were rendered between October 1999 and March 2004, with a demand of Rs. 8 lakh based on invoices to various parties. Additionally, a demand of over Rs. 5 lakh was raised due to gaps in the Bill Nos., leading to assumptions about service rendered under "unavailable bills."

The Tribunal's decision addressed the demand related to available invoices, remanding it to the original authority for reevaluation. This remand was prompted by the Appellant's argument that not all bills pertained to security services but also included supply of manpower like drivers and technicians. However, the Tribunal confirmed the demand concerning the unavailable bills, prompting the Appellant's counsel to request reconsideration based on the lack of exclusive connection between the "unavailable bills" and security services.

Upon review, the Tribunal found merit in the counsel's submission and set aside the order regarding the demand related to unavailable bills, remanding the case for further consideration by the original authority. Consequently, the appeal was allowed through remand, with the stay application becoming irrelevant in light of the decision on the appeal. The judgment highlights the importance of clear invoicing and the necessity for a direct link between services rendered and the associated bills to determine tax liability accurately.