TaxTMI 
TaxTMI 
2022 (6) TMI 614
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....06-2007 to 2010-2011 while it had provided services aggregating to Rs. 10,30,78,749/- (including service tax) during this period. Audit, therefore, observed that service tax, was short paid. Accordingly, show cause notices dated 03.08.2012, 02.04.2014 and 17.04.2015 were issued to the appellant proposing to recover the short paid service tax aggregating Rs. 1,19,21,936/- and also proposing to impose penalties under the Sections 76, 77(2) and 78 of the Finance Act, 1994. These three show cause notices were adjudicated by the impugned order. Aggrieved, the present appeal is filed. 3. As an Event Management Agency, the appellant conceptualizes, consults, plans, coordinates and organizes events hosted by the client in the following manner :- (a) The client has the appellant only for conceptualization, planning and coordination of the event and separately has third party service providers, such as, transporters, caterers, electricians, musicians, artists etc. The appellant receives only professional fees on which it has paid service tax which is not in dispute. (b) The client requests the appellant to organize the complete event in which case the appellant approache....
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....of the Finance Act, 1994. Upto 17.04.2006, this section read as follows :- "Valuation of taxable services for charging service tax. - For the purposes of this Chapter, the value of any taxable service shall be the gross amount charged by the service provider for such service provided or to be provided by him. Explanation 1. For the removal of doubts, it is hereby declared that the value of a taxable service, as the case may be, includes, (a) the aggregate of commission or brokerage charges by a broker on the sale or purchase of securities including the commission or brokerage paid by the stock broker to any sub broker. (b) the adjustments made by the telegraph authority from any deposits made by the subscriber at the time of application for telephone connection or pager or facsimile or telegraph or telex or for leased circuit; (c) the amount of premium charged by the insurer from the policy holder; (d) the commission received by the air travel agent from the airline; (e) the commission, fee or any other sum received by an actuary, or intermediary or insurance intermediary or insurance agent from the insurer; ....
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....ovider for such service provided or to be provided by him; (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration; (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. Where the gross amount charged by a service provider, for the (2) service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. The gross amount charged for the taxable service shall include (3) any amount received towards the taxable service before, during or after provision of such service. Subject to the provisions of sub-sections (1), (2) and (3), the (4) value shall be determined in such manner as may be prescribed. Explanation: For the purpose of this section, (a) "consideration" includes any amount that is payable for the taxable services provided ....
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....for such service' and the valuation of tax service cannot be anything more or less than the consideration paid as quid pro qua for rendering such a service. 25. This position did not change even in the amended Section 67 which was inserted on May 1, 2006. Sub-section (4) of Section 67 empowers the rule making authority to lay down the manner in which value of taxable service is to be determined. However, Section 67(4) is expressly made subject to the provisions of sub-section (1). Mandate of sub-section (1) of Section 67 is manifest, as noted above, viz., the service tax is to be paid only on the services actually provided by the service provider". 11. The appellant relied on this judgment in the proceeding before the Commissioner, who however, did not agree that the ratio of this judgment applied to the appellant's case. The relevant portion of the impugned order is as follows: "I find that the issue in the case law quoted by the Noticee is inherently different from the instant case as the present case deals with service provided by third party service providers like Catering, tent, sound, artists, etc. which are integral and inseparable part of the event as a....