2024 (5) TMI 816

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....availing security services from Central industrial security force on the strength of MOU (memorandum of understanding) signed between the appellant and the CISF. 2. The appellants are paying Service Tax on the security services availed from CISF under reverse charge mechanism basis as provided under provisions of Rule 2 (1)(d)(i)(E) of the Service Tax Rules of 1994 read with Notification No. 30/ 2012 -ST dated 20.06.2012. It is a matter of record that as per the MOU entered between the appellant and the CISF the scope of service provided by CISF to the appellant is restricted only to supply of security personnel which is utilized by the appellant for the purpose of security of their premises. The appellants are making available accommoda....

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....e at hand in favour of the appellant. The relevant extract of the above order is reproduced here below:- "2. It is matter of record that since the value of certain facilities was not available, the department by invoking the provisions of Section 72 of the Finance Act, 1994 (best judgment method) has calculated the value of above mentioned free services at 25% of the cost of deployment as the value of such facilities extended by Reliance Industries Limited to the appellant. On the above contention, a show cause notice dated 09.04.2015 has been issued to the appellant demanding service tax of Rs. 89,46,991/- by invoking the provisions of Section 71(1) of Finance Act, 1994. Interest and penal provisions have also been invoked in the show ca....

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....nt for accommodation provided to CISF etc are not includible. Further, the Principal Bench at New Delhi in the case of Commr. of CGST, Cus & C. Ex, Dehradun vs. Commandant CISF, CISF Unit, 2019 (24) GSTL 232 (Tri- Delhi), has also held that free accommodation provided by the service recipient to CISF security personnel providing security services is not includable in taxable value. Service Tax Appeal No. 75020/2017 We find that the Ld. Commissioner has merely confirmed the demand, in para 26 appearing in Page 25 of the impugned adjudication order, on the ground that the issue was pending for consideration before the Supreme Court in the case Bhayana Builders (P) Ltd (Supra) and Intercontinental Consultants and Technocrats Private Limited ....