2017 (9) TMI 362

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....or respondent ORDER Per: Ramesh Nair 1. The fact of the case is that the appellants were engaged in providing manpower recruitment service and discharging the service tax. During the period 2005-2006 and 2006-2007 though they have paid the service tax on such service but not paid the service tax on amount of provident fund and ESI of the amount collected from the service recipient. A show....

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....TR 593 2.1 He further submits that as regards the amount collected on account of provident fund and ESI, it is the reimbursement of actual amount which is deposited in the Provident Fund and ESI accounts. Therefore, the reimbursement of actual expense should not be included in the gross value of the service. On this issue, he placed reliance on the following judgements: a) Circular No.187/10....

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....rvice value of manpower recruitment and supply service. This clearly shows the appellant have no malafide intention to evade service tax, accordingly the entire demand being under extended period is hit by limitation and accordingly not sustainable. He placed reliance on the following judgements: a) Neelkanth Associates - 2016 (41) STR 569 (Tri-Del) b) H.M Singh & Co. - 2014-TIOL-1504-HC-ALL....

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.... under the belief that the reimbursement is not taxable. The department was not prevented from raising the issue that such amount is also liable to be taxed. However, no action was taken by the department on receipt of ST-3 return. As per the disclosure of the value towards provident fund and ESI in the ST-3 return, there is neither any suppression of fact nor any malafide intention on the part of....