TaxTMI 
TaxTMI 
2016 (11) TMI 110
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....penalty were imposed under Section 78 and 77 of Finance Act. Demands amounting to Rs. 81,809/- and Rs. 11,029/- were dropped. Aggrieved by the said orders, the appellants are before the Tribunal. Following are the services and period for which demands are raised. Sr. No. Category Period 1. Business Auxiliary Service 22.05.2006 to 18.12.2008 2. Manpower Recruitment or Supply Agency services 06.08.2006 to 18.09.2009 3. Management or Business Consultancy services 31.07.2007 to 09.01.2009 4. Management, Maintenance or Repair services 06.05.2005 to 30.05.2008 5. Video Tape production services 05.03.2007 to 12.04.2007 6. Internet Telecommunication service 05.01.2007 to 20.05.2008 7....
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....ms of the agreement SBL was required to maintain certain staff in their pay roll to promote and market the J&J Range of products. The cost including the salary and related expenditure of this staff was reimbursed by J&J on monthly basis. The said clause of the agreement reads as follows: "SBL to maintain the required number of staff in their payroll to promote and market the J&J range of products and such costs including the salary and related expenditure will be reimbursed by J&J on a monthly basis. In the event of the agreement being terminated due to justifiable causes, J&J to compensate the staff of SBL adequately." He argued that such arrangement cannot be considered as Manpower Recruitment or Supply Agency services for the....
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....ance benefit. The subsidiary companies cannot be said to be their clients. Deputation of the employees was only for and in the interest of the company. There was no relation of agency and client. It was pointed out that the employee deputed did not exclusively work under the direction of supervision or control of subsidiary company. All throughout he would be under the continuous control and direction of the company." 5. He further relied on the decision of the Hon'ble High Court of Delhi in the case of Intercontinental Consultants & Technocrafts P. Ltd. 2013 (29) STR 9 (Del.). In the said case Hon'ble High Court has held that value of reimbursement cannot be considered a part of assessable value of the taxable service. Ld. couns....
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....service provided by (i) any person under a contract or an agreement; or (ii) a manufacturer or any person authorised by him, in relation to, (a) management of properties, whether immovable or not; (b) maintenance or repair of properties, whether immovable or not; or (c) maintenance or repair including reconditioning or restoration, or servicing of any goods, excluding a motor vehicle. With effect from 01.06.2007, Explanation was added to the said definition vide Finance Act, 2007, which reads as follows:- "Explanation For the removal of doubts, it is hereby declared that for the purposes of this clause, goods includes computer software;" The said explanation to the said de....
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....pellant s activity started with issue of summons dated 27.09.2006. It is seen that the liability to pay tax in respect of sr.no. 2,3,5,6 and 8 had started after the initiation of investigation. In respect of sr.no. 3,5,6, and 8 the appellant have paid the service tax along with interest before issue of show-cause notice. However, the fact remains that the tax was not paid voluntarily and is not being disputed on merits. In these circumstances, while the demand of service tax and interest is upheld, penalties imposed in respect of these demands are set aside invoking sub-section (3) of section 73. In these cases, since liability itself arises while the case was being investigated by the revenue, no charge of suppression can be invoked. 10....
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....s pointed out by the respondent, company is not in the business of providing recruitment or supply of manpower. Actual cost incurred by the company in terms of salary, remuneration and perquisites is only reimbursed by the group companies. There is no element of profit or finance benefit. The subsidiary companies cannot be said to be their clients. Deputation of the employees was only for and in the interest of the company. There was no relation of agency and client. It was pointed out that the employee deputed did not exclusively work under the direction of supervision or control of subsidiary company. All throughout he would be under the continuous control and direction of the company." 12. We find that the facts of the case in the dec....