TMI Blog2019 (2) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9; in computing the 'service tax' payable. The Security Agencies Services (manpower recruitment agencies) had been brought under the levy of service tax as per the Finance Act, 1994 with effect from 07.07.1997 onwards. 2. The Security Agencies Association, the appellant in W.A.No.812/2012, is a Society registered under the Travancore-Cochin (Literary, Scientific and Charitable Societies) Registration Act (Act 21 of 1860) and the members of the Association are organisations providing jobs to unemployed youth, more particularly, to work as Guards in various residential and commercial premises. 3. M/s Reliance Security Agency, the appellant in W.A.No.1657/2012, is also registered under Section 67 of the Service Tax Rules (Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion or independent petitioners and in none of these cases, the assessment has been challenged. Any assessment made by the Revenue with regard to these Agencies has to be challenged in accordance with the statutory remedies available to them. It is contended that there is absolutely no merit or bona fides in the Writ Petitions challenging the constitutional validity of the statutory prescription under Section 67, and therefore, the argument of the writ petitioners that the 'gross amount' without segregating the 'expenditure part from the rest', has no merit or bona fides . Because, the very section provides for fixation of tax on the basis of 'gross amount'. 8. It will therefore have to be considered whether, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering the scope of Section 67 of the Act and the Rules made thereunder, and in particular the constitutional validity of Rule 5, held that the valuation of taxable service shall be 'gross amount' chargeable by the services provided 'for such services', to the extent it includes reimbursement of expenses in the value of taxable service for the purpose of charging service tax. The assessee in that case was a provider of consulting engineering services, received payments not only for its service, but also reimbursed expenses incurred by it, such as air travel, hotel stay and the service tax paid was only in respect of the amounts received by it for the services rendered to its clients and that it was not paying service tax in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier Writ Petitions and the directions given thereunder, W.P.(C) No.9591/2005 was filed. The learned Single Judge has observed that the role of the security agencies, like the petitioners is only to act as 'agents' in the matter of collection of 'service tax'. The liability to pay service tax under Section 68 of the Act is cast on the 'service receivers' and it is for that reason that the Writ Petitions were dismissed by the learned Single Judge. We find absolutely no merits or reasons to interfere with these findings of the learned Single Judge so as to hold that the provisions under Section 67 is ultra vires the Constitution. Hence, the Writ Appeals are also dismissed. No costs. - - TaxTMI - TMITax - Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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