ORDER: [PER SHRI K. ANPAZHAKAN]

The present appeal has been filed by the Senior Commandant, CISF Unit, NSCBI Airport, Link Building, 1st Floor, Dum Dum Airport, Kolkata – 700 052 (hereinafter referred to as the “appellant”) against the Order-in-Original No. 71/PR. COMMR/ST-I/KOL/2016- 17 dated 14.09.2016 passed by the Ld. Principal Commissioner of Service Tax-I, Kendriya Utpad Shulk Bhawan, 180, Shantipally, Rajdanga Main Road, Kolkata – 700 107.

The brief facts of the case are that the appellant is engaged in providing security services to the Airports Authority of India, NSCBI Airport, Kolkata. On the basis of the allegation that the appellant has paid Service Tax only on the amount received as monetary consideration from the Airports Authority of India and not discharged their Service Tax liability on the non- monetary consideration received, a Show Cause Notice dated 21.10.2014 was issued was issued, demanding Service Tax of Rs.80,98,449/- (inclusive of cesses), along with interest. The said Notice also proposed imposition of various penalties.

The above Show Cause Notice was adjudicated vide the Order-in-Original No. 71/PR. COMMR/ST- I/KOL/2016-17 dated 14.09.2016 wherein the demand of Service Tax of Rs.80,98,449/-, as proposed in the Show Cause Notice, has been confirmed, along with interest. A penalty of Rs.80,98,449/- has also been imposed under Section 78 of the Finance Act, 1994. The adjudication order also demanded interest of Rs.21,02,016/- for the delayed payment of Service Tax. A late fee amounting to Rs.33,500/- was also levied for the delay in filing the ST-3 Returns along with a penalty of Rs.10,000/-under Section 76 of the Act.

Aggrieved by the confirmation of the demand of Service Tax, along with interest, penalties and late fee thereon, the appellant has filed the present appeal.

During the course of hearing, the appellant submitted that they have already paid Service Tax on the amount received as monetary consideration for providing services to the Airports Authority of India; that the Airports Authority of India, Kolkata provides them amenities like office space with electricity and its maintenance at Airport, motor vehicle with fuel for security purposes, medical facility, quarters and barracks for accommodation, etc., and the value of such non-monetary consideration was not known to them; that accordingly, they have not included the said value for the purpose of payment of Service Tax. The appellant pointed out that the Department has obtained the equivalent money value of this non- monetary consideration from the Airports Authority of India vide letters dated 30.04.2013 and 16.05.2013 and demanded Service Tax as above.

In this regard, the appellant has submitted that the Tribunal Bench of Allahabad in their own cases in Central Industrial Security Force v. Commissioner of Cus., C.E. & S.T., Allahabad [Final Order No. 70053 of 2019 dated 09.01.2019 in Service Tax Appeal No. 70293 of 2016 – CESTAT, Allahabad] and Central Industrial Security Force (CISF) v. Commissioner of Service Tax-I, Pune [Final Order No. A/87119/2021 dated 09.11.2021 – CESTAT, Allahabad] has held that such non-monetary considerations, in the nature of reimbursable expenditure, are not includable in the assessable value for the purpose of demanding Service Tax. They have also cited the decisions rendered in the cases of Sr. Commandant, Central Industrial Security Force (Bhel Unit) v. Commissioner of Cus. & C.Ex., Bhopal [Final Order No. 50468 of 2023 dated 03.04.2023 in Service Tax Appeal No. 51661 of 2017 – CESTAT, New Delhi] and Bharat Coking Coal Ltd. v. Commissioner of C.Ex. & S.T., Dhanbad [2021 (9) TMI 83 (Tri. – Kol.)] in support of the above view. On the basis of these submissions, the appellant contends that the demand of Rs.80,98,449/-, along with interest and penalty thereon, as confirmed against them vide the impugned order on the non-monetary consideration received is liable to be set aside.

Reg