COMMISSIONER OF CENTRAL EXCISE Vs. JAYASHREE SURAKSHA RANKSHAK

JUDGEMENT

(1.) THESE appeals by the Department are on a common issue and therefore being disposed of by this common order.

(2.) HEARD both sides. The relevant facts in brief are as follows: The appellants provide the taxable services under heading Security Agency and Manpower Recruitment Agency In addition, they also render services of cleaning & gardening etc. which are not taxable services. In respect of their taxable services, there has been demand of service tax, interest and imposition of penalty. The same is not in dispute. The dispute relates to certain amount collected by the appellants in respect of non taxable services representing service tax and the department seeks to recover the same in terms of Section 11D of the C.E. Act, 1944 which are made applicable to Service Tax matters with effect from 16 -8 -2002.

(3.) THE learned DR submits that in respect of the non taxable services also the appellants have shown, in certain cases, the Service Tax components in the invoice and in other cases though they have not mentioned the amount separately in the invoices given to the Services receiver, they have letter/work sheet annexed to the invoices kept in their offices which indicated certain amounts as the service tax. In addition, the Balance Sheets of the firms also clearly indicated the amount collected as Service Tax. The learned DR also relies the judgment in the case of P.T. Steel Industries v. CCE Ahmedabad in 2004 (177) SLT 1117 (Tri -Mumbai). The learned advocate representing the Respondents, interalia, submitted the following: Section 11D is attracted only the case of the person who is liable to pay duty and only when amounts have been collected as representing duty. In respect of non taxable services the appellants can not be treated as persons liable to pay duty of service tax and it is also not correct to say that they have collected the amounts as representing service tax. The worksheet found in the records in their office cannot show that they have collected the amounts as Service Tax or got it recovered as Service Tax from the service receivers. He relies on the following judgments: