GDA SECURITY PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS judgment shall govern the above mentioned four petitions, which have been filed by various 'security and Detective Agencies", challenging the provisions of Secs. 66 and 67 of the Finance Act, 1994. In fact, from the prayer it appears that the challenge is to the said Act generally and the above mentioned sections particularly.

(2.) PETITIONERS' case is that they are the Security and Detective Agencies, who render and provide assistance of security to any property or person by providing security personnel or bodyguards for security, undertaking detective activities, investigate matters such as financial credibility of persons, trademark or copyright infringements, etc. They also verify the veracity of incidents, claims of statements of clients and their case is that the assistance provided by them is not only service rendered, but jobs carried out on behalf of the client amounting to recoverable expenses of the actual expense, cost or price incurred. Their claim is that if they provide a security-guard and bill a client, 70% of the bill amount would be towards the actual wages of the security-guard, 20% would be towards statutory and mandatory benefits such as Provident Fund, Employment State Insurance Scheme, Uniform Allowance, etc., 5% would be towards the administrative expenses and the remaining 5% would be the actual income of the fee charged by the petitioners.

(3.) AS has already been stated the other challenge is that of "legislative competence" viewing the service tax to be on the petitioners' profession, trade, calling and employment and therefore covered by Entry 60 of List II of the Seventh Schedule.