TaxTMI 
TaxTMI 
TaxTMI 
2015 (11) TMI 1355
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.... alternate energy. Various companies in the group are Muthoot Fincorp Limited, Muthoot Capital Services Limited, MPG Hotels and Infrastructure Ventures (P) Ltd. The appellant (MPCMS) was formed as a core group to manage various establishments of the group. The firm is the central management establishment of MPG and provides advice and consultancy in areas like finance, legal, personnel, technical etc as emerging from the Partnership Deed. MPCMS also has control over entire manpower of group companies. While MPCMS provided such services to all the entities, they had a separate agreement with MFL which provided for payment of administrative charges for the services rendered by MPCMS. Taking a view that MPCMS is providing personnel to MFL and ....
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....inition of manpower supply and the motive for providing such manpower is of no consequence. MPCMS and the group companies to whom they are supplying manpower are different legal entities and the activity cannot be termed as service to self. RPG Enterprise Ltd. v. CCE, Mumbai IV - 2008 (11) STR 488 3. The learned counsel on behalf of the appellant made the following submissions: A. Organizational set up Muthoot Pappachan Group (MPG) is a group of establishments which undertake diversified businesses such as financial services, hospitality, real estate, automotive dealerships, health services and alternate energy. Various establishments are: * Muthoot Fincorp Limited * Muthoot Capital Services Limited * MPG Hotels & Infras....
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....abor incentives for the employees. MPCMS is an association of the group companies who come together to work for and among themselves and for the benefit of MPG. The activities of MPCMS was more in the nature of co-ordination between establishments and intended to provide administrative convenience rather than to supply manpower, as I clear from the Agreement between MPCMS and MFL which is the biggest of the group companies. C. Persons are employed with the group companies under their control and supervision In most of the cases, employees are directly employed under the MPG companies MPCMS is only a co-ordinating body to ensure uniform recruitment policy. The advertisement for recruitment is given by the MPG company which is....
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....istrative Charges. These charges are not a consideration for MSA service but are received in order maintain the gratuity reserves, administrative expenses and legal compliance. Administrative charges were given for a host of consultancy service to be provided by the appellant such as financial, legal, personnel, technical, technological etc. Even if these administrative charges were deemed to be consideration for the alleged MSA service, the taxable value would amount to Rs. 10,40,00,000/- (Rupees Ten Crores Forty Lakhs only) for the period 2007-13. Administrative charges paid within normal period of limitation (2011-13) is only Rs. 2,40,00,000/- (Rupees Two Crores Forty Lakhs only) and the service tax liability (if there arises any)....
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....T. 532 (Tri.-Ahmd.) * GE BE Pvt. Ltd. V. CCE - 2011-TIOL-1410-CESTAT-BANG F. Extended period cannot be invoked in a revenue neutral situation. G. Since the activity is not taxable, no interest can be demanded and no penalty can be levied. 4. On the other hand learned AR would submit that according to the agreement, the manpower is to be supplied by MPCMS, MFL and they are required to pay not only the wages of the employees but also administrative charges to MPCMS. He draws our attention to specific provisions in the contract to show that the agreement clearly provides for manpower supply and other services by MPCMS to MFL and therefore the stand taken by the Revenue that appellant is liable to pay service tax under the category of Ma....