TaxTMI 
TaxTMI 
2025 (5) TMI 485
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....nafter referred to as the appellant) are in Appeals against the OIA dt.26.07.2012, vide Appeal No.ST/3510/2012 and also against OIA dt.30.08.2012, passed by Commissioner (Appeals), wherein, the OIOs dt.20.12.2011 & 29.12.2011 were upheld along with interest and penalty respectively and the appeals filed by the appellant were set aside. 2. The brief facts are that the appellants are a society formed under Societies Act, 1964, and were engaged in providing Manpower Supply Services to M/s ONGC Ltd. Based on the information received from M/s ONGC, it was noticed that the appellants were supplying manpower to ONGC but not discharging the service tax liability for the services provided under 'Manpower Recruitment or Supply Agency Service' (MRS....
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.... that the service of manpower was introduced w.e.f. 07.07.1997 and the definition has been amended a few times. He further submits that the value of the service has been calculated without taking into cognizance the expenses towards salaries and statutory payments such as ESI/PF, etc., which constitute major portion of the demand and if these amounts are removed from the taxable value, the appellants only receive a nominal amount as overhead charges and bulk of the amount received is spent towards salaries and other statutory payments which could not be included while calculating the service tax payable. 5. In this regard, he relied on the decision of Tribunal at Delhi in the case of MP Security Force Vs CCE & ST, Bhopal [2020 (43) GSTL ....
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....olved in both the appeals, we propose to take up both the appeals together for disposal. 9. Appellants have challenged only against fixation of value of taxable services under section 67 of the Finance Act, 1994, reckoning the 'gross amount' without segregating the expenses towards salaries and statutory payments under the ESI/EPF is not correct. 10. The contract workers' payrolls are being discharged by the service provider. M/s ONGC was paying the wages along with statutory obligation pertaining to the workers engaged for the work to the service provider (appellant) and not to such worker individually. The contract workers were not employees of M/s ONGC. At this juncture, it is important to mention the section 65(105)(k) of the Fina....
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....rged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation: For the purposes of this section,- (a) "consideration" includes - (i) any amount that is payable for the taxable services provided or to be provided; (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed; (iii) any amount re....
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....s contribution. Thus, in compliance of the said provisions, the service receiver M/s HNGIL had contributed to such funds, the amount towards the workmen deployed by the appellant. The fact is not under dispute that such contributed amount was never given by such service receiver to the appellant. Thus, the gross value for the computation of service tax liability in the hands of the appellant will not take into consideration the amount of contribution made by the service receiver M/s HNGIL directly into the respective heads of account. Therefore, in our considered view, service tax demand cannot be confirmed on the employer's contributed amount towards P.F., E.P.F. and E.S.I." 13. M/s ONGC calculates the wages payable as per agreement, PF....