TaxTMI 
TaxTMI 
2026 (9) TMI 291
X X X X Extracts X X X X
X X X X Extracts X X X X
....has upheld the order-in-original no. 127/2011 dated 31.10.2011 of the adjudicating authority demanding service tax on the services of 'Manpower recruitment and supply agency service" stated to have been rendered by the appellant, along with appropriate interest and imposing equivalent penalty under section 78 of the Finance Act, 1994. 2. Brief facts are that the appellant is registered as a service provider of Airport Service. During Audit, it was noticed that as per the agreement dated 10.12.2003 entered into by the Appellant with Sri Lankan Airlines Private Limited (SAPL), the Appellant provided manpower (staff) to SAPL and had received consideration for the same. The Appellant had classified the same under 'Airport Service' and paid s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....charged service tax. Apart from the said consideration in terms of the Agreement, SAPL reimbursed salary, conveyance, house rent allowance, provident fund etc payable to the staff which was being so reimbursed without any markup It was further submitted that the SCN had proposed to levy service tax on the expenses conceded as reimbursable expenses by referring to Section 67 of the Finance Act, 1994 for the period prior to 18-04-2006 and Rule 5 of the Service Tax (Determination of Value) Rules, 2006 for the period post 18-04-2006. The Adjudicating Authority has held that these charges ought to have been assessed to service tax liability as the gross value of receipts in terms of Section 67 of the Finance Act, 1994 read with Rule 5(1) of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....grounds possible should be taken by the Department in initiating one proceeding and that after conclusion of a proceeding for the same period the Department cannot issue SCN on another ground as then there would be no end to proceedings against a party, which would be against public policy. 5. Shri. M. Selvakumar, Learned A.R, appearing for the respondent, reiterated the findings of the appellate authority. 6. Heard the rival submissions, perused the appeal records as well as the case laws submitted as relied upon. 7. The solitary question which arises for our consideration is whether the expenses reimbursed by SAPL to the appellant are to be included in the gross value as per Section 67 of the Finance Act, and the consequent deman....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d for inclusion of expenditures or costs incurred by the service provider in the course of providing taxable services, in the value of such taxable services, was stuck down as ultra vires Section 66 and Section 67 of the Act and as travelling beyond the scope of the said sections. Therefore, when the very basis of the demand in the SCN issued in this case, as well as its confirmation was premised on Rule 5 of the Service Tax Valuation Rules ibid, which has been found by the Hon'ble Supreme Court to be much beyond the mandate of Section 67, we have no hesitation in holding the demand of service tax in this case is untenable and that the impugned order is liable to be set aside. 10. That apart, we also find merit in the appellant's content....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... cannot issue show cause notice on one ground, A. conclude the proceedings and latter cannot issue another show cause notice on another ground, B. for the same period and so on. If this is allowed, then there would not be an end to the number of proceedings against a party. This is definitely against the public policy. In this connection we would like to recall maxim - "Res judicata pro ventate accipitar - A matter adjudged is taken for truth. A matter decided or passed upon by a court of competent jurisdiction is received as evidence of truth". - (Black's law Dictionary)." We find the reliance placed by the appellant on the said decision to be apposite. In any event, there is no evidence of any positive act of wilful suppression or misstat....