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TMI Blog2017 (7) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... m April 2006 to September 2006 being barred by limitation, with cum-tax benefit and with the demand in relation to services provided to special economic zone units being set aside while upholding the penalty under section 78 of Finance Act, 1994. Consequently, the order of the original authority crystallising tax liability of Rs. 26,22,867/- as provider of 'security agency service' was modified to the extent of exclusions. 2. During the proceeding before the lower authorities, the appellant had admitted that statutory payments had not been included for taxable value. Likewise, the expenses incurred on rent of office, salary to staff, charges toward electricity, stationery, courier, travel and uniforms had also been excluded for the same re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central Excise, Vadodara [2010-TIOL-CESTAT-AHM], Malabar Management Services Pvt Ltd v. Commissioner of Service Tax, Chennai [2007-TIOL-1949-CESTAT- MAD], and S Jayashree v. Commissioner of Central Excise, Mangalore [2007-TIOL-486-CESTAT-BANG]. 5. It would appear from the records that, with the modification ordered by the first appellate authority, the demand was reduced to Rs. 17,87,548. The taxable service in section 65 (105) (w) of Finance Act, 1994 is :- 'any service provided or to be provided to any person by a security agency in relation to security of any property or person, by providing security personnel or otherwise and includes the provision of services of investigation, detection or verification of any fact or activity' Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions permitted by the first appellate authority. 7. We take note that the appellant has discharged the tax liability alongwith interest. It is also not in dispute that the issue of the gross value of taxable service had been subject to challenge on various occasions with differing interpretations being placed upon the inclusions and exclusions thereon. In those circumstances, it would not be appropriate to saddle the non-payment of tax or short-payment of tax with the motive of deliberate evasion of tax. Considering all these aspects, we consider it appropriate to invoke the provisions of section 80 of Finance Act, 1994 and set aside the penalty that have been imposed on the appellant. The impugned order is modified to this extent. (Pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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