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2024 (6) TMI 910 - AT - Service TaxIssues involved: The issues involved in the judgment are the inclusion of the value of non-monetary benefits in the taxable value under Section 67 of the Finance Act, 1994 and the imposition of penalties under Section 76, 77, and 78 of the Finance Act, 1994. Inclusion of non-monetary benefits in taxable value: The matter revolved around whether the value of non-monetary benefits provided by the Airport Authority to M/s. Central Industrial Security Force should be included in the taxable value under Section 67 of the Finance Act, 1994. The Tribunal referred to a previous decision in favor of the appellant where it was held that expenses incurred towards medical services, vehicles, dog squad, stationery expenses, telephone charges, and accommodation provided to CISF were not includible in the taxable value. The Tribunal concluded that the demand of service tax on the value of non-monetary facilities extended to M/s. Central Industrial Security Force was not taxable, setting aside the impugned order-in-original. Imposition of penalties: Regarding the imposition of penalties under Section 76, 77, and 78 of the Finance Act, 1994, the Tribunal found that since the demand of service tax was not sustainable in the case, the question of imposing penalties did not arise. The Tribunal held that there was no legal infirmity in the order-in-original regarding the imposition of penalties. Consequently, the appeal filed by M/s. Central Industrial Security Force succeeded, the department's appeal was dismissed, and the cross-objection filed by the party was disposed of accordingly. This judgment by the Appellate Tribunal CESTAT AHMEDABAD addressed the issues of including non-monetary benefits in the taxable value under Section 67 of the Finance Act, 1994, and the imposition of penalties under Section 76, 77, and 78. The Tribunal held in favor of M/s. Central Industrial Security Force, ruling that the value of non-monetary benefits provided by the Airport Authority was not taxable. As a result, the impugned order-in-original was set aside, and the appeal filed by M/s. Central Industrial Security Force was allowed. The department's appeal was dismissed, and the penalties under Section 76, 77, and 78 were not imposed due to the unsustainable nature of the service tax demand.
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