CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI.

PRINCIPAL BENCH, COURT NO. III SERVICE TAX APPEAL NO. 50756 OF 2021 [Arising out of the Order-in-Original No. 32-34/TPS/PC/CGST/DSC/2020-21 dated 6/11/2020 passed by The Principal Commissioner of CGST, New Delhi] M/s Senior Commandant representing ……Appellant Central Industrial Security Force, CISF Unit, IGI Airport, Room No. 509, 5^th Floor, G+5 Building, Meharam Nagar in front of arrival Palam Airport, New Delhi – 110 037.

Versus Principal Commissioner of CGST, ….Respondent Delhi South Commissionerate

2^nd & 3^rd Floor, EIL Annex Building Bhikaji Cama Place New Delhi.

APPEARANCE:

Shri Ram Avtar Sharma and Shri Bhupesh Aggarwal, Advocates for the Senior Commandant, CISF Ms. Jaya Kumari, Authorized Representative for the Department AND SERVICE TAX APPEAL NO. 50433 OF 2021 [Arising out of the Order-in-Original No. 32-34/TPS/PC/CGST/DSC/2020-21 dated 6/11/2020 passed by The Principal Commissioner of CGST, New Delhi] Principal Commissioner of CGST, …. Appellant Delhi South Commissionerate

2^nd & 3^rd Floor, EIL Annex Building Bhikaji Cama Place New Delhi.

Versus M/s Senior Commandant representing ……Respondent Central Industrial Security Force, CISF Unit, IGI. Airport, Room No. 509, 5^th Floor, G+5 Building, Meharam Nagar in front of arrival Palam Airport, New Delhi – 110 037 APPEARANCE:

Ms. Jaya Kumari, Authorized Representative for the Department Shri Ram Avtar Sharma and Shri Bhupesh Aggarwal, Advocates for the Senior Commandant, CISF CORAM:

HON’BLE MS. BINU TAMTA, MEMBER (JUDICIAL)

HON’BLE MR. P.V. SUBBA RAO, MEMBER (TECHNICAL)

FINAL ORDER NO’s. 50012-50013/2026 DATE OF HEARING : 10.09.2025 DATE OF DECISION:06.01.2026 Per: P. V. SUBBA RAO The order dated 6.11.2020¹ passed by the Principal Commissioner, CGST, Delhi South, New Delhi² is assailed by the Senior Commandant, Central Industrial Security Force³ and the Revenue in these two appeals. In the impugned order, the Commissioner decided the proposals made in three show cause notices⁴ dated 8.3.2016 covering the period 2009-2010 to 2013- 2014 (SCN-I), dated 23.3.2016 covering the period 2014-2015 (SCN-II) and dated 19.4.2017 covering the period 2015-2016 (SCN-III).

2. CISF was registered with the Service Tax department and has been providing security services to various entities including the Delhi International Airport Limited (DIAL). CISF is a department under the Ministry of Home Affairs, Government of India. DIAL is an entity created to run the Delhi International Airport. CISF has been issuing monthly bills for the cost

1. impugned order

2. Commissioner

3. CISF 4. SCN of deployment of staff including charges of arms & ammunition, clothing, supervision charges, etc. to DIAL and paid service tax on these amounts.

3. In addition to the service charges, DIAL provided some free services and facilities such as transportation, medical, reimbursement or office expense, telephone expenses, rent free accommodation, dog squad handling expenses, etc. The three SCNs proposed to levy service tax on these amounts also as per Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006⁵. They also proposed imposition of penalties and recovery of some interest.

4. The Commissioner dropped the demand made in SCN-I, SCN-II and part of the SCN-III (upto April 2015) but confirmed the demand of service tax only for the period May 2015 to March 2016. He also found that there was some double counting and corrected the calculation and therefore, confirmed the demand of only Rs. 5,93,05,515 (as opposed to Rs. 11,86,11,031 proposed in the SCN-III for this period). He also imposed a penalty of Rs. 59,30,551/- (being 10% of the total amount demanded) under section 76 of the Finance Act, 1994⁶ read with section 174 (2) of the Central Goods and Services Tax Act, 2017⁷

5. CISF‟s appeal is against the demand of service tax confirmed with penalty. Revenue‟s appeal is against the dropping of part of the demand.

5. 2006 Rules

6. Finance Act

7. CGST Act

6. In the impugned