2018 (4) TMI 480 - AT - Service Tax

Levy of service tax - security agency service - whether the security services provided by The Security Guards Board (the appellant) is liable to Service Tax or otherwise? - Held that - though there is contradiction in the judgment given by this Tribunal in the appellant s own case and the judgment given by the Punjab & Haryana High Court, moreover the basic issue that whether the services provided by Security Guards Board per se is taxable or otherwise, the issue is seized with the Hon ble Supreme Court, wherein the order of the Tribunal has been stayed. There is no purpose of laying the matter pending in this Tribunal - matter remanded to the adjudicating authority for passing a fresh order - appeal allowed by way of remand.

Summary

Issues Involved:
Whether security services provided by The Security Guards Board are liable to Service Tax or not.

Analysis:
The case revolved around the taxability of security services provided by The Security Guards Board. The appellant had filed an appeal before the Hon'ble Supreme Court against a partially confirmed demand of Service Tax. The Hon'ble Supreme Court had granted an interim injunction on the impugned judgment passed by the Tribunal. The Revenue argued that the total gross amount should be taxable, while the appellant contended that only the commission should be taxed. The Revenue relied on various judgments to support their stance.

The Tribunal acknowledged the contradiction between its own judgment and that of the Punjab & Haryana High Court on the taxability of services provided by The Security Guards Board. Given the pending matter before the Hon'ble Supreme Court, where the Tribunal's order had been stayed, the Tribunal deemed it unnecessary to keep the matter pending. Therefore, the Tribunal remanded the case to the adjudicating authority for a fresh order post the outcome of the Hon'ble Supreme Court's judgment. Since both issues had not reached a final conclusion, the Tribunal kept all issues open for reconsideration by the adjudicating authority.

In conclusion, the appeals were disposed of by way of remand to the adjudicating authority, awaiting the final judgment from the Hon'ble Supreme Court.