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2014 (1) TMI 361 - AT - Service TaxDemand of service tax - Security staff provided to BSNL - Invokation of extended period of limitation - Imposition of penalty - Valuation of service - Whether the services provided by the assessee can be considered as security services or these are manpower Supply Services - Held that:- Ongoing through the agreement it is very clear that assessee is required to provide security guards to M/s. BSNL. Security guards also expected to be in Army Uniform while on duty. The responsibility of character etc. of the guards remains with the assessee. Assessee is expected to submit bill including their wages to M/s. BSNL and BSNL in turn paid to the assessee. The fact that the assessee is expected to disburse the amount of wages in presence of BSNL official will not made a difference on the nature of service or amount of service tax to be paid. Personal supplied are expected to work as security guard, and ensure security of articles and equipments in the building and offices. Keeping in view the agreement and the definition of the security agency as stipulated under Section 65 (79)of the Finance Act, 1994, we have no doubt that the service provided by the assessee is that of security agency - wages of security guards will form part of the assessable value as far as security agencies service is concerned. Assessee had taken the registration and also filing the returns wherein all the details were being indicated. We also note that the assessee a Retd. Army officer was not collecting any service tax form his client even on the service charges. Keeping in view peculiar facts and circumstances of the case, we find that ingredients to invoke the extended period are absent in the present case. Accordingly, we set aside the demand which is beyond the normal period of limitation. We also observe that only a part of the demand i.e. from October 2004 to March 2005 will remain within the normal period of limitation. The demand within the normal period is confirmed. We also consider the case to be fit for waiving the penalty by exercising the power under Section 80 of the Finance Act, 1944 - Decided partly in favour of Revenue.
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