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<h1>Manpower agencies penalized for service tax non-compliance despite expecting repeal.</h1> The Appellate Tribunal CEGAT, Mumbai upheld penalties and interest on two manpower recruitment agencies for failure to pay service tax, despite their ... Service Tax – Manpower recruiting agencies (1) Penalty (2) Tax liability The Appellate Tribunal CEGAT, Mumbai confirmed penalties and interest on two manpower recruitment agencies for not paying service tax. The agencies argued they expected the tax to be repealed, but the Tribunal upheld the penalties, stating taxpayers must pay taxes imposed by Parliament. The Tribunal dismissed the appeals, emphasizing the importance of complying with the law.