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TMI Blog2006 (10) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... hich are taxable under the law. 2. Aggrieved by the orders of authorities below, this appeal has come before us. None represented the appellant inspite of notice. On examining the grounds of appeal, the appellant has heavily relied upon the fact that the Government of Punjab under the Punjab Act No. 33 of 1978 has set up the appellant corporation for rehabilitation of ex-serviceman. In the appeal memorandum, the appellant has contended that they are not the commercial organization and hence, they were not liable to pay the service tax on the security services provided by them for their clients. Further, the valuation arrived at by the authorities below has also been questioned since only the service charges were received by the appellant f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son, and includes services of investigation, detection or verification of any fact or activity including services of providing security personnel." 4. We have heard the learned authorised representative for the department and perused the record. From the record, it is clear that the appellant corporation, though created under the Punjab Ex-Serviceman Act, 1978, has rendered the services of security agency, which is carried out on commercial terms as evident from their own agreements. For instance, the profit and loss account for the financial year 2001-2002 of the appellant corpn. not only talks of "net profit" earned by them; but also with clear description that the net profit was "derived from commercial activity of their security produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of say, financial credibility of any person, trade mark/copyright infringements, etc. Most of the security agencies are only registered under the Shops and Establishments Act. These agencies may not be required to take a license under any other statutes. 10.2 An issue that has been raised is whether service tax is leviable on the entire amount charged to the clients to whom security guards/personnel have been provided as the bulk of the charges represent salary to the employee (at least the minimum wage prescribed under the law), employer's ESI and EPF contribution, income-tax deduction at source, payment to wards professional tax and labour welfare fund and other non-statutory charges such as bonus, leave, uniforms, inci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40) E.L.T. 332 (Mad.) may also be relevant here. Para 10 of the said judgment reads as under:- &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided. We also held there that it would be the discretion of the concerned authority to decide as to whether a taxing statute is constitutional or otherwise on the basis of the way the calculations are to be made by the taxing authorities. Indeed a nature of the tax cannot be ascertained on the basis of its measure and this proposition is well settled. Even otherwise, the question raised regarding the calculation of the tax would not be apposite to decide the constitutional validity of the provisions much less under Art. 14 of the Constitution of India. All the challenges related to the calculations and mote particularly in comparison to the other services would have to be rejected on this ground alone." 7. We also rely upon the agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f excise on any goods shall, at the time of clearance of the goods, prominently indicate in all the documents relating assessment, sales invoice, and other like documents, the amount of such duty which wilt form part of the price at which such goods are to be sold. Section 12-B of the Central Excise Act contemplates that every person who has paid the duty of excise on any goods under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such duty to the buyer of such goods. Thus, the provider of service only assessee according to section 65 of Finance Act is to collect service tax from the users of service as contemplated under Sections 12A and 12B of Central Excise Act, 1944. The second Res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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