2014 (9) TMI 880

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....er Sections 75 and 76 of Finance Act, 1994 have also been imposed. 2. The impugned demand comprises the following components :         (i) A demand of Rs. 35,82,676/- is confirmed on the ground that there was difference between the figures given in their ST-3 returns and their balance sheet for the relevant period.       (ii) A demand of Rs. 3,30,011/- is confirmed on the ground that International Financial Corporation is not notified as international agency to which rendering of service is exempt from service tax.        (iii) A demand of Rs. 23,44,07,478/- has been confirmed on the ground that the payments received under the Swarnjayanti ....

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....ed in the list of International bodies eligible for the exemption availed of by the appellants. The appellants contention that IBRD and IFC are both constituents of World Bank and as IBRD is mentioned as one of the eligible organisations for such exemption, the same should be made available to IFC also even if IFC is not so mentioned, is totally untenable and mis-conceived. Thus, prima facie, there is no case made out for staying the recovery of this component. 5(i). Coming to the third (and major) component of Rs. 23,44,07,478/-, the appellants have contended that the service tax has been demanded on the amount received by them for the implementation of the development programme aimed at training rural BPL youths in areas of textile, l....

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....ural poor to enhance their employability or capacity for self-employment. Indeed, it is similar to what the Govt. run Industrial Training Institutes (ITIs) do. Looking at the definition of Manpower Recruitment Supply or Agency, prima facie appellants cannot fall thereunder and consequently they cannot be held to have provided manpower recruitment and supply service. (v) Thus, prima facie, the appellants have made out a good case that they are not covered under the category of Manpower Recruitment or Supply Agency Service which calls for staying the recovery of this component of the impugned demand. 6. As regards the prima facie sustainability of the iv component of the demand amounting to a relatively paltry sum of Rs. 71,734/- on acc....