2006 (7) TMI 15

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Service in April, 1999. On 11-8-99, revenue issued show cause notice alleging that the service tax was required to be paid on the gross amount received and not on the service charge component alone. Differential duty demand was, accordingly, made. Despite the notice, the appellant continued to value service at the value of service charge. Consequentially under-payment also continued. The impugned orders demand the tax so short-paid from October, 1998 to September, 1999 and impose penalties. 4. The appellants challenged the short-levy demand as well as penalty (@ Rs.200/- per day). The contention in relation to valuation is that appellant was charging separately for the wage of the security guard, PE, ESI payment and service charge and se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bsp;                            12   19602         26882 P.F. @   13.00%                                                                 3495 E.S.I. @   4.75%         &nb....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is. We may read that definition "Gross amount charged by such agency from the client for services rendered in connection with the security in any property or person and includes services of investigation, detection of verification of any fact or activity including services of providing security personnels" 6. The above definition leaves no room for doubt as to what is the value of the security service. It is the "gross amount charged" by the agency from the client for the services rendered in connection with the security. In the present case, security is provided through manual guard. In such a system, the wage of the security guard is the basic cost. The appellant was also charging the recipient of the security service for the cost o....