9911796707
TMI Blog2025 (4) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... ce was issued on 20/10/2011 by invoking the extended provisions demanding Service Tax of Rs.68,45,287/-. The appellant submitted that the amount received by them is on account of salary paid to the persons who have been deployed at the end of the clients. They claimed that this is the nature of "reimbursement of expenses" and hence no Service Tax is payable on such amount. They submitted that in respect of the consideration received from the client specifically towards their service charges, they are paying Service Tax and showing the same in the ST-3 Returns. After due process, the Adjudicating Authority has confirmed the demand and appropriated Rs. 6,21,090/- paid by them in the course of investigation. Being aggrieved, the appellant is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Service Tax has been done only based on the Balance Sheet and Profit & Loss figures. This shows that the appellant has not suppressed any material fact. Accordingly, he submits that the Revenue has not made out any case on account of suppression on the part of the Appellant. He further submits that the appellant carried bonafide belief that the entire amount on account of salary PF etc. are being straightaway credited in the account of the employees. Hence, no Service Tax was being paid. In view of these submissions, he prays that the confirmed demand for the extended period may be set aside on the account of time bar also. 4. The Learned AR reiterates the findings of the Adjudicating Authority. She submits that in the Statement recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment and Supply Agency Services' during the period 16.06.2005 to 31.03.2012. 10. Following the above said precedent and interpreting the expression "such service" as propounded by the Hon'ble Supreme Court in the case of UOI Vs. Intercontinental Consultants and Technocrats Ltd.'s case (supra) in the context of taxable service "Manpower Recruitment and Supply Service, we are of the view that the administrative charges collected in providing Manpower Recruitment and Supply Agency Service, is only to be part of the gross taxable value and all reimbursable expenses, salary, bonus, etc. paid to the employee by the appellant and collected from their clients cannot be included within the scope of gross taxable value under Section 67(1)(i) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... @ 5-10% of the cost of the employee. In the above case, on the gross value of Rs. 7,22,61,645/- with commission @ 10 %, the same would amount to Rs. 72,26,165/- as the consideration amount. The Service Tax on Rs.72.26 lakhs, if average Service Tax is considered as 10-12.36%, the amount payable would be to the extent of Rs. 9 lakhs. The appellant has paid Rs. 3,49,598/- as has been noted in the above Table. Subsequently, as per the page 11 of the Show Cause Notice, the appellant has paid 6,21,090/- during the course of investigation. The details are as per the following table:- Date S Tax E Cess SHE Cess Total 23-08-2011 29,000 870 - 29,870 10-09-2011 49,000 1,470 - 50,470 12-09-2011 75,000 2,250 - 77, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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