NEW INDUSTRIAL SECURITY FORCE Vs. CCE

JUDGEMENT

(1.) THE appellant has challenged the order of the Commissioner (appeals) by which demand of Rs. 1,12,856/ - made under Section 73 of Chapter -V of Finance Act, 1994, was confirmed along with imposition of penalty and Payment of interest.

(2.) THERE is no dispute about the fact that the amount of service tax sought to be recovered includes salary of the security personnel. Section 67(V) of the Finance Act 1994, defines the value of taxable service in relation to service provided by a security agency to a client as under: -

(3.) IT appears from the definition of value of the taxable service under Section 67(V) that is the gross amount which is charged by the agency from a client for the services rendered which is required to be taxed. As regard security personnel, the nature of the service is of only making provision for arranging the security personnel. It is activity of providing security personnel which would be services. Therefore, prima -facie, salary payable to the security personnel would stand on a different footing than the services provided by the security agency to procure the security personnel for the client. The impugned order is, therefore, stayed during the pendency of the appeal and there shall be waiver of pre -deposit of the amount payable under the impugned order.