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TMI Blog2019 (2) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... In Union of India v. M/s Intercontinental Consultants whereas, in the case in hand, we are concerned with the amounts, which is inclusive of the ESI, EPF and such other statutory payments to be paid by the employer for the persons employed. Therefore, the security agencies are totally on a different footing and the above-cited decision is not applicable to the case in hand. There are no merits or reasons to interfere with these findings of the learned Single Judge so as to hold that the provisions under Section 67 is ultra vires the Constitution - appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant in W.A.No.1657/2012, is also registered under Section 67 of the Service Tax Rules (Finance Act 1994) and is providing security services to residential, commercial and industrial units, as also to Governmental agencies, according to their requirement, earning a commission out of it. 4. It is submitted by the appellants that in most of the cases, salary is being paid to the persons, who are employed, directly by their employers and it is contended that these associations and agencies do not have any clients as such, since they are only supplying manpower to persons or associations, when contacted. 5. The grievance is mainly with regard to the steps taken by the respondents to mulct the liability towards service tax upon these A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of 'gross amount'. 8. It will therefore have to be considered whether, while calculating the 'taxable service' under Section 67 of the Act and reckoning the 'gross amount' without segregating the expenses towards salary and statutory payments under ESI/EPF, etc; which constitutes a major portion of the total figure involved, is reasonable or not. 9. We heard the Senior Standing Counsel for the Revenue, the learned Counsel for the appellant in W.A.No.1657/2012, as also the the Amicus Curiae Smt.S.Parvathi, appointed by us for the appellant in W.A.No.812/2012, since none appeared for the appellant. 10. The arguments advanced by the learned Standing Counsel appearing for the Revenue is that the scope and extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces rendered to its clients and that it was not paying service tax in respect of any expenses incurred by it, which was reimbursed by the clients. In the said decision, the consideration was mainly concerned with the reimbursement of expenses incurred, such as air travel, hotel stay, etc; whereas, in the case in hand, we are concerned with the amounts, which is inclusive of the ESI, EPF and such other statutory payments to be paid by the employer for the persons employed. Therefore, the security agencies are totally on a different footing and the above-cited decision is not applicable to the case in hand. 12. Exts.R1 and R2 in W.P.(C) No.9591/2005 are the income and expenditure account and the bill produced by the writ petitioner, which w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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