TaxTMI 
TaxTMI 
2015 (10) TMI 2459
X X X X Extracts X X X X
X X X X Extracts X X X X
....stered with the service tax authorities for discharging service tax obligations under taxable categories like Consulting Engineer's Service, Maintenance and Repair Service, Erection, Commissioning and Installation Services, Management Consultants Services, Business Auxiliary Service and Works Contract Service. Appellant herein is a part of the group company of Forbes Marshall Ltd. Employees of the appellant are deputed to various group companies for functioning/discharging their duties. As and when the employees are deputed to group companies, appellant herein gets paid the reimbursement of the salaries paid to such employees who are deputed. Revenue authorities were of the view that the amount received by the appellant as reimbursement of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....isation in the group companies. He would submit that the salary which has to be paid by the appellant to the deputed employees is the only amount collected by them from the group companies which is reimbursement of the actual expenses. He would submit that this issue is now decided by the Hon'ble High Court of Gujarat in the case of Commissioner of Service Tax vs. Arvind Mills Ltd. 2014 (35) STR 496 (Guj.). 4.1. As regards the service tax liability of Rs. 61,046/- he would submit that this amount was payable and due to inadvertent error it was not discharged, which is now paid in full along with interest. It is his submission that penalty which is sought to be imposed on this amount be set aside. 5. The learned Departmental Representa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....se & Service Tax Appellate Tribunal ("the Tribunal" for short) dated 26.7.2013 raising following questions for our consideration:- "(a) Whether in the fact and the circumstances of the case the Hon'ble CESTAT has erred in applying the ratio of a case decided by CESTAT Delhi in case of Aramount communication Ltd. reported in 2013-TIOL-37-CESTAT-DEL.: 2013 (29) STR 317 without narrating and applying the same to the facts of the present case? (b) Whether in the facts and the circumstances the activity of the Respondent is covered under the definition of Manpower Recruitment Agency as contemplated in C168 of S.65 of the Finance Act 1994 R/w. C1 105 (k), thus the respondent is liable for the Service Tax? (c) Whet....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Revenue vehemently contended that the definition of Manpower Supply Recruitment Agency is very wide and would include range of activities of supply of manpower either temporarily or permanently. He submitted that sizable manpower was required for the respondent from the group companies for deputation of the staff. He drew our attention to the amendment of such definition to contend that after the amendment, the definition was widened. 5. It is true that in the present form, the definition of Manpower Supply Recruitment Agency is wide and would cover within its sweep range of activities provided therein. However, in the present case, such definition would not cover the activity of the respondent as rightly held by the Tribunal. To r....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... include any such activity where it is carried out either directly or indirectly supplying recruitment or manpower temporarily or otherwise. However, fundamentally recruitment of the agency being a commercial concern engaged in providing any such service to client would have to be satisfied. In the present case, facts are to the contrary. 7. In the result, no question of law arises. Tax Appeal is dismissed." 7. Since the issue of "Manpower Recruitment and Supply Agency Services" is now squarely settled in identical set of facts, we hold that the impugned order to that extent is incorrect and needs to be set aside and we do so. 8. As regards the confirmation of demand of Rs. 61,046/- under the category of "Business Auxiliary S....