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TMI Blog2010 (6) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, the other application is infructuous and hence dismissed. 2. The stay application seeks waiver of pre-deposit and stay of recovery in respect of service tax amount of Rs. 11,49,485/- demanded by the lower authorities from the appellant, as also in respect of equal amount of penalty imposed on the appellant under Section 78 of the Finance Act' 94 and other penalties imposed on them under various other provisions of the said Act. The demand of Service tax is under the head "Security Agency Service" defined under Section 65(105)(w). According to this definition, 'taxable service' means 'any service provided, to a client, by a security agency in relation to the security of any property or person, by providing security personnel or o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s called "the Private Security Guards (Regulation of Employment and Welfare) Scheme, 2002" under Section 4(1) of the Act. The objects of this Scheme were stated to be, more or less, the same as those mentioned in the preamble to the Act. The Scheme was applicable to the Registered Security Guards of the Board and the Security Guards in the employment of any employer agency developed in any factory or establishment and employer agencies and registered principal employers in the State of Maharashtra. 4. After hearing both sides, it appears to us that the provisions of clause (31) of the above Scheme are relevant. According to these provisions, the wages and other levies payable to the registered Security Guards of the Board every month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was implemented by the State Government. It says that the Board fixes such wages to be paid to Security Guards within its jurisdiction as provided under the Minimum Wages Act. The Board is authorised to collect charges and levy from the registered employers in every month in respect of registered security guards engaged by them. The levy is collected for utilising the same for various activities such as payment of employer's contribution to Provident Fund as well as that of E.S.I., ex-gratia, Leave with wages, wages for paid holidays, gratuity, workmen compensation and insurance of guards etc, and also for recovering expenses of implementation of the Scheme. The letter further states that the Board collects the levy @ 42.5% of wages as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es from the employers and distributes the same to the guards and also manages various activities for the welfare of the guards. The letter further asserts that the Board is not a 'commercial concern' within the meaning of this term used in the definition of the agency under Section 65 of the Finance Act. Under Section 73 it has no liability to pay the Service tax. The learned Counsel for the appellant has reiterated all these averments contained in the Board's letter to the Superintendent of Service Tax. He has also invited our attention to Annexure 'A' to the show cause notice, which gives details of the amounts collected by the Board from various factories/establishments during the period of dispute (December 2003 to March 2005), as also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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