TMI Blog2019 (2) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... T OF INDIA], Hon'ble Supreme Court while considering the scope of Section 67 of the Act and the Rules made thereunder, and in particular the constitutional validity of Rule 5, held that the valuation of taxable service shall be 'gross amount' chargeable by the services provided 'for such services', to the extent it includes reimbursement of expenses in the value of taxable service for the purpose of charging service tax - 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 empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Security Agencies Services (manpower recruitment agencies) had been brought under the levy of service tax as per the Finance Act, 1994 with effect from 07.07.1997 onwards. 2. The Security Agencies Association, the appellant in W.A.No.812/2012, is a Society registered under the Travancore-Cochin (Literary, Scientific and Charitable Societies) Registration Act (Act 21 of 1860) and the members of the Association are organisations providing jobs to unemployed youth, more particularly, to work as Guards in various residential and commercial premises. 3. M/s Reliance Security Agency, the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se cases, the assessment has been challenged. Any assessment made by the Revenue with regard to these Agencies has to be challenged in accordance with the statutory remedies available to them. It is contended that there is absolutely no merit or bona fides in the Writ Petitions challenging the constitutional validity of the statutory prescription under Section 67, and therefore, the argument of the writ petitioners that the 'gross amount' without segregating the 'expenditure part from the rest', has no merit or bona fides . Because, the very section provides for fixation of tax on the basis of 'gross amount'. 8. It will therefore have to be considered whether, while calculating the 'taxable service' und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules made thereunder, and in particular the constitutional validity of Rule 5, held that the valuation of taxable service shall be 'gross amount' chargeable by the services provided 'for such services', to the extent it includes reimbursement of expenses in the value of taxable service for the purpose of charging service tax. The assessee in that case was a provider of consulting engineering services, received payments not only for its service, but also reimbursed expenses incurred by it, such as air travel, hotel stay and the service tax paid was only in respect of the amounts received by it for the services rendered to its clients and that it was not paying service tax in respect of any expenses incurred by it, which was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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