TaxTMI 
TaxTMI 
2014 (1) TMI 1555
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....of supply of manpower. The appellants were paying service tax on the gross amount received from their clients except in the case where the manpower is supplied to textile mills and Maharashtra State Secondary School of Certificate Board, Aurangabad (SSC Board). In respect of the manpower supplied to textile mills and SSC Board, the appellants are only paying service tax on the portion of the service charges retained by the appellants, i.e. without taking into consideration the labour wages and other amount received from the textile mills and SSC Board. The dispute in the present appeal is in respect of the valuation of service provided to textile mills and SSC Board. 3. The contention of the appellants is that the appellants are liable to ....
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....is not rightly quantified. The contention is that for the year 2009-10, the appellants had not provided any manpower to the textile mills and SSC Board. However, the Revenue has confirmed the demand regarding which the appellants had already paid the tax on the gross amount. 6. The Revenue relied upon the findings of the lower authority and submitted that as the Hon'ble Delhi High Court in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. (supra) held that the provisions of Rule 5(1) of the Service Tax Rules are ultra vires on the ground that the provisions are beyond the scope of Section 67 of the Finance Act, the contention is that as per the provisions of Section 67 of the Finance Act, the service provider is to pay servi....
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....e appellants with intent to evade tax. 8. In respect of quantification, the Revenue relied upon the written submission submitted at the time of personal hearing on 23.11.2012, where the appellants only argued in respect of quantification on the ground that the amount of TDS and other charges which were deducted by the textile mills are not to be taken into consideration while computing the gross amount for the purpose of service tax. The contention is that TDS is deducted by the service recipient. The appellants will get the refund of the amount while discharging the income tax liability hence it cannot be said that TDS is not part of the gross amount in respect of the service provided. 9. We find that in the present case the appellants a....