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of <h1>Tribunal remands service tax issue for verification due to factual nature; rules in favor of Revenue</h1> <h3>M/s Security And Intelligence Services (India) Ltd. Versus Commissioner of Central Excise, Lucknow And (Vice-Versa)</h3> M/s Security And Intelligence Services (India) Ltd. Versus Commissioner of Central Excise, Lucknow And (Vice-Versa) - 2018 (14) G. S. T. L. 258 (Tri. - ... Issues Involved:1. Embezzlement of Service Tax and wrong computation in tax assessment.2. Bifurcation of branch affecting service tax assessment.3. Taxability of comprehensive fire services under 'Security Agency Services'.4. Limitation period for tax demand and imposition of penalty.5. Appeal filed by Revenue on the taxability of comprehensive fire services.Embezzlement of Service Tax and wrong computation in tax assessment:The appellant, engaged in cleaning and security services, faced discrepancies in tax computation due to embezzlement by an employee. The advocate argued for a wrong computation leading to excess demand. The Tribunal remanded the matter for verification by the Adjudicating Authority due to factual nature of the issue.Bifurcation of branch affecting service tax assessment:The appellant's branch bifurcation caused confusion in tax assessment as revenue raised demands on transferred balances. The Tribunal remanded the matter to the Adjudicating Authority for examination of records and to address the appellant's plea, ensuring the appellant's opportunity to present their case.Taxability of comprehensive fire services under 'Security Agency Services':The appellant contended that providing fire services to a client does not fall under 'Security Agency Services.' However, the Tribunal held that since the services were for protecting the client's property, they qualified as 'Security Agency Services,' attracting service tax.Limitation period for tax demand and imposition of penalty:The appellant's prior payment of service tax for similar services to another client showed awareness of tax liability. The Tribunal found the appellant's actions reflected malafide intentions, justifying the extended period for tax demand and penalty imposition.Appeal filed by Revenue on the taxability of comprehensive fire services:In a related appeal by the Revenue, the Tribunal ruled that the comprehensive fire services provided by the appellant fell under 'Security Agency Services,' setting aside the Commissioner's order and allowing the Revenue's appeal.This judgment addresses issues of tax computation errors, branch bifurcation impact on tax assessment, taxability of specific services, limitation period for tax demands, and penalties. The Tribunal emphasized the importance of factual verification, remanding matters for detailed examination by the Adjudicating Authority. The decision highlighted the broad definition of 'Security Agency Services' and upheld tax liabilities for services related to property security. Additionally, the Tribunal considered the appellant's prior tax payments to determine awareness of tax obligations, justifying penalty imposition. The ruling in the Revenue's appeal further clarified the tax treatment of comprehensive fire services under the specified category.
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