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2018 (6) TMI 1769 - AT - Service TaxLevy of Service Tax - “Watch and Ward“ services provided to Metro Railways - security agency or not - period March 01 to May 05 - HELD THAT:- The Appellant have been providing services related to security, manpower supply for cleaning, washing, sweeping, gardening, upkeep, watch and guard, grass cutting, checking, watch and ward, mechanized cleaning, driving , office assistance etc. The services provided by the said appellant are classifiable under two categories viz. “Security Agency Service” and “Manpower Recruitment or Supply Agency’s service.” They are rendering “security service” to their clients. The service was made taxable under the category of “security Agency” w.e.f. 16.10.98 vide clause 94 of Section 65 of chapter v of the Finance Act, 1994. It is found from the impugned order that the Adjudicating Authority has observed that their functions cannot be restricted to checking of tickets of the passengers only. The personnel deployed by them must have done the overall supervision of passengers including watching the property of Metro Railway and watching that any passenger cannot make any damage to any property. The personnel deployed must have under taken the job related to security of Metro property. They are also to ensure smooth movement of passengers in the Metro Station - the services provided by the appellant to Metro Railway, Kolkata surely falls under the category of “Security Agency Service. The appellant has argued that for non-taxable services, section 11D of Central Excise Act, 1944 has no application. They have also mentioned that Section 73A of the Finance Act, 1994 has been introduced w.e.f 18.04.06 and that according to sub-section(2) of Section 73A, service tax collected on non–taxable service is demandable/payable to Government exchequer. This provision is only applicable w.e.f 18.04.06.During the material period the provision of Section 11D of the Central Excise Act, 1944 was applicable. Appeal dismissed - decided against appellant.
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