2008 (2) TMI 48

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....tegory and accordingly they obtained registration as a Security Agency on 22-11-1999. But they continued to pay service tax in the category of 'Man Power Recruiting Agency' from 16-10-1998 to 30-9-1999. As they felt that they were not liable to pay service tax in this category from 16-10-1998 to 30-9-1999, they claimed refund of the tax. The original authority rejected this claim and appropriated the tax paid by the party for the said period in the category of 'Man Power Recruiting Agency' towards the tax which ought to have been paid in the category of 'Security Agency'. The claim for refund of tax paid for the period prior to 16-10-1998 was rejected as time-barred. M/s. SSB filed an appeal with the Commissioner (Appeals). The appellate au....

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....Section 11 of the Central Excise Act. Under this provision, as applied to the facts of this case, it was open to the original authority to deduct any amount of service tax payable by the assessee as 'Security Agency' from any amount of service tax refundable to him by reason of this amount having been wrongly collected in the category of 'Man Power Recruitment Agency'. This is precisely what was done by the original authority in the present case. Hence the appropriation of Rs.10,995/- (claimed as refund) as the service tax towards 'Security Agency' is in accordance with law and the same cannot be challenged on the aforesaid grounds. In the result, Appeal No. S/15/2001 gets dismissed. 3. The remaining appeal is against demand of service t....

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....the appellants submitted that they had filed periodical returns from the very beginning and that service tax was paid on the correct taxable value in accordance with Section 67(v) of the Finance Act, 1994. Their employees' wages and other reimbursable expenses were not includible in the taxable value as clarified by CBEC in respect of other taxable services. In this connection, learned counsel referred to Circular No. 43/5/97-TRU, dated 2-7-1997, wherein it was clarified that the service tax on 'Man Power Recruitment Agency' should be on the gross amount charged to the client for services rendered in relation to the recruitment of man power, excluding the expenses incurred by the Agency on behalf of the client, which were reimbursed on actu....