9911796707
TMI Blog2008 (2) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... ed registration as a Security Agency on 22-11-1999. But they continued to pay service tax in the category of 'Man Power Recruiting Agency' from 16-10-1998 to 30-9-1999. As they felt that they were not liable to pay service tax in this category from 16-10-1998 to 30-9-1999, they claimed refund of the tax. The original authority rejected this claim and appropriated the tax paid by the party for the said period in the category of 'Man Power Recruiting Agency' towards the tax which ought to have been paid in the category of 'Security Agency'. The claim for refund of tax paid for the period prior to 16-10-1998 was rejected as time-barred. M/s. SSB filed an appeal with the Commissioner (Appeals). The appellate authority held, in respect of the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der this provision, as applied to the facts of this case, it was open to the original authority to deduct any amount of service tax payable by the assessee as 'Security Agency' from any amount of service tax refundable to him by reason of this amount having been wrongly collected in the category of 'Man Power Recruitment Agency'. This is precisely what was done by the original authority in the present case. Hence the appropriation of Rs.10,995/- (claimed as refund) as the service tax towards 'Security Agency' is in accordance with law and the same cannot be challenged on the aforesaid grounds. In the result, Appeal No. S/15/2001 gets dismissed. 3. The remaining appeal is against demand of service tax of Rs.1,08,781/- for the period 16-10-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... periodical returns from the very beginning and that service tax was paid on the correct taxable value in accordance with Section 67(v) of the Finance Act, 1994. Their employees' wages and other reimbursable expenses were not includible in the taxable value as clarified by CBEC in respect of other taxable services. In this connection, learned counsel referred to Circular No. 43/5/97-TRU, dated 2-7-1997, wherein it was clarified that the service tax on 'Man Power Recruitment Agency' should be on the gross amount charged to the client for services rendered in relation to the recruitment of man power, excluding the expenses incurred by the Agency on behalf of the client, which were reimbursed on actual basis. Learned counsel has also referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... areful consideration to the submissions. The impugned demand is in the category of 'Security Agency'. It is on the sum of employees' wages and other reimbursable expenses which were incurred by the assessee in connection with the rendering of security services to clients but not included in the value of taxable service for payment of tax. The circulars of the Board cited by the appellants do not relate to security agency. The provisions of Section 67(v) as they stood during the material period did not provide for abatement of such reimbursable expenses from the taxable value. After examining all the relevant provisions, this Tribunal has held in the case of Punjab Ex-servicemen Corporation (supra) that 'Security Agency' was required to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
