2019 (2) TMI 1175

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....ppellants are registered for rendering services of providing security personnels to M/s BHEL, Haridwar. Department during an audit observed that the appellant has received accommodation from BHEL but the cost thereof has not been included in the taxable value of services provided by CISF to BHEL which otherwise has to be added in terms of Section 67 of the Finance Act, 1994 read with Rule 3 of Service Tax (Determination of Value) Rules, 2006. Observing, on the said ground, that the appellant had short paid the service tax liability up to June 2012 that the impugned SCN proposed the demand of service tax for an amount of Rs. 22,54,231/- alongwith the interest at the appropriate rate and the proportionate penalties. The said demand was confir....

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....of accommodation under the notion of it being the taxable income. Appeal is accordingly prayed to be dismissed. 5. After hearing both the parties we are of the opinion as follows: Section 67 of Finance Act has to be looked into foremost for the adjudication which reads as follows: "167. Valuation of taxable services for charging service tax (1) Subject to the provisions of this Chapter, service tax chargeable on any taxable service with reference to its value shall,- (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; (ii) in a case where the provision of service is....

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.... by the service provider in the following manner:- (a) the value of such taxable service shall be equivalent to the gross amount charged by the service provider to provide similar service to any other person in the ordinary course of trade and the gross amount charged is the sole consideration; (b) where the value cannot be determined in accordance with clause (a), the service provider shall determine the equivalent money value of such consideration which shall, in no case be less than the cost of provision of such taxable service." A joint reading of both the provisions makes it clear that the service tax is chargeable on the value of the service provided. In the present case service provided is the security personnels by CISF to M/s BH....