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Keral State Ex- Service League Versus Commissioner of Central Excise, Customs and Service Tax Trivandrum

2017 (12) TMI 774 - CESTAT BANGALORE

Levy of service tax - security agency service - appellant are mainly involved in resettlement activities related to welfare of ex-servicement - It is the claim of the appellant that since their organization is a charitable society, the same does not have the character of a commercial concern and hence, they are not liable to pay service tax - Held that: - services provided in relation to the security of any property or person becomes a taxable service under law - a similar issue came up before t .....

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DB, ST/288/2008-DB, ST/289/2008-DB, ST/290/2008-DB, ST/291/2008-DB, ST/292/2008-DB, ST/293/2008-DB, ST/294/2008-DB, ST/295/2008-DB, ST/296/2008-DB, ST/297/2008-DB - Final Order No. 23006-23017 / 2017 - Dated:- 12-12-2017 - Shri S. S. Garg, Judicial Member And Shri V. Padmanabhan, Technical Member None For the Appellant Mr. Pakshirajan, AR For the Respondent ORDER Per : V. Padmanabhan The present appeals are filed against various impugned Orders-in-Appeal as mentioned in the preamble above coveri .....

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departments such as Income Tax, Provident Fund, etc. Revenue was of the view that service tax was liable to be paid by the appellant for the services rendered. The authorities below have upheld such demands of service tax for the period under dispute. The appellant has challenged such demand for service tax in the present appeals. Appellants have contended that during the period under consideration, the definition of security agency service under Section 65(40) of the Finance Act, 1994 covered t .....

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service has been provided in the capacity of commercial concern. Accordingly, the demand for service tax has been upheld. Aggrieved by the same, the present appeals have been filed which are being disposed of by this common order. 3. When the appeals were called today, no one appeared on behalf of the appellants, however, a request dated 12.12.2017 was received through fax from Dr. K. P. Pradeep, Advocate claiming to represent the appellants. He has requested for adjourning the appeals to any ot .....

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vice in respect of registered society formed by ex-service men has come up before the Tribunal time and again. The issue for the period under consideration stands decided in favour of Revenue and against the assessee. He cited the following decisions in this regard wherein the case has been settled in favour of the Revenue. (i) Punjab Ex-servicemen Corporation vs. Commissioner of Central Excise, Chandigarh: 2009 (13) STR 529 (Tri.-Del.) (ii) Punjab Ex-servicemen Corporation vs. UOI: 2012 (25) ST .....

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movable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel. Taxable Service "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 otherwise and includes the provision of services of investigation, detecti .....

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f providing security personnel. It is clear from the above definitions that services provided in relation to the security of any property or person becomes a taxable service under law. As regards the valuation of taxable services, it is also clear that the gross amount charged by the agency has to be treated as value which would include the payments made to the security personnel. 5.1 The main argument advanced by the appellant in their appeal is that they are registered as Society and governed .....

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old that service provider must have profit motive. The word business does not necessarily imply requirement of profit motive. The expression is used in a taxing statute in the sense of occupation or profession which occupies time, attention and labour normally with the object of making of profit as against support or pleasure. In State of A.P. v. H. Abdul Bakshi & Bros, AIR 1965 SC 531, it was observed :- 4. We are unable to agree with this view of the High Court. A person to be a dealer mus .....

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easure. By following the decision of the Hon ble High Court, we are of the view that the appellant will not be entitled to claim that the society formed by ex-servicemen does not constitute a commercial concern. 5.2 In a recent case of Rajasthan Ex-servicemen Ltd. (supra), an identical issue was decided by the Division Bench of the Tribunal in which it was observed as under: 6. Regarding the liability of the appellant for Service Tax under the category of security agency, it is clear that the se .....

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f the society which clearly stipulates about net profit. We find no justification to hold the appellant as anything other than commercial entity. Similarly, the value for tax purpose has to be the gross amount received by the appellant from their clients is a well settled legal position in terms of Section 67 of the Finance Act, 1994. The Valuation in respect of security agency services has been subject matter of many decisions of Tribunal and Hon ble High Courts which are as under : I. Security .....

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