Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 211 - AT - Service TaxValuation - security service and manpower supply services - inclusion of component of salary, EPF, ESI and uniform allowances etc. are not includible in the gross amount charged of assessable value - Section 67 of Finance Act - waiver of penalty - HELD THAT:- It is evident from the provisions of the Acts that the contributions made towards the two Acts are in the nature of statutory contribution and required to be deducted by the appellant as immediate employer on behalf of Principal Employer - following the ratio laid down in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 - SUPREME COURT] these contributions cannot be treated as value of such service under Section 67 of the Act. Therefore, there is no authority provided in the law for subjecting these contributions to service tax under Section 67 of the Act. The provisions of the PF and ESI Act makes it clear that it will be the primary responsibility of the principal employer to deduct amount towards the PF and deposit the same with the Central Government. The appellant in this case claimed that it has deducted the contributions on behalf of principal employer, that is recipient of the service, for remittance to the competent authority in terms of the provisions of EPF and ESI Act. The contributions made towards PF & ESI is, therefore, not required to be added for the purpose of calculation of the gross amount under Section 67 of the Act, if the same has been deposited with the Government. Thus, the contributions made towards EPF and ESI are not liable to be included for the computation of gross amount under Section 67(1) of the Act. Abatement towards deduction of wages and salaries paid to the personal employees by the appellant - HELD THAT:- The same is covered by the decision of Mumbai Bench of this Tribunal in case of SECURITY GUARDS BOARD FOR GREATER BOMBAY & THANE DIST. VERSUS COMMISSIONER OF CENTRAL EXCISE, THANE [2016 (12) TMI 859 - CESTAT MUMBAI], wherein it is held that wages and allowance including salary and administrative charge collected from client is excludible from the gross value of taxable service in terms of Section 67 of the Act - the appellant is entitled for the abatement towards the payment made on account of contribution towards ESI, EPF and PF and also towards wages and salaries while computing the assessable value in terms of Section 67 of the Act for the payment of service tax. Appeal by way of remand to the original adjudicating authority to re-determine the service tax required to be paid by the appellant - Matter on remand.
|