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2019 (2) TMI 774 - HC - Service TaxVires of Section 67 in Chapter V of the Finance Act, 1994 (Act 32 of 1994) - Valuation - inclusion of expenses and salaries paid to the Security Guards and the statutory payments like contributions to ESI and EPF in the 'gross amount' charged for valuation of 'taxable service' in computing the 'service tax' payable - case of Revenue is that the scope and extent of the 'taxable net' has been provided by the Parliament in view of the policy of the Government and cannot be questioned by the writ petitioners - Held that:- 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 would show that the salary and other benefits paid to the security personnel and Ext.R3, which is relevant agreement with the service receiver indicates that there is no master and servant relationship between the security personnel and the clients/service receiver. In the counter-affidavit filed by respondents, it is specifically contended in para 9 that this Court was approached earlier by filing W.P.(C) Nos.20017/2004 and 17045/2004 for a direction to reimburse the service tax, if they failed to collect from their clients due to non-inclusion of such provisions for realising service tax in the agreements with the clients. The Writ Petitions were disposed of directing the respondents to consider the claim of the petitioners and pass orders as specified.
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