TaxTMI 
TaxTMI 
2017 (12) TMI 1146
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....i Builders, (iii) M/s. Classique Associates, (iv) M/s. Green Valley Developers, (v) M/s. Omega Associates, (vi) M/s. Lave View Developers, (vii) M/s. Roma Builders Pvt Ltd and (viii) M/s. Hiranandani Properties Pvt. Ltd. The appellant are undertaking office work of group companies in regard to particular area of work. The function undertaken by M/s. HDPL in respect of group companies includes accounting, administration, supervision, management, correspondence project sales, sales promotion, development, constructions, public relation, liesoning with various agencies etc. The function involves processing of all business transaction of the remaining group companies. That M/s. HDPL has, in relation, to the service rendered through its staff, n....
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....ay Jain, Ld. C.A. appearing on behalf of the appellant made following submissions. (a) In the case of M/s. Federal Bank Limited 2010 (18) S.T.R. 62 (Tri. Bang.) the Tribunal held that for the services to fall within the ambit of clause (vii) of section 65(19), the services should firstly fall within the ambit of clauses (i) to (vi). Clause (vii) cannot be read independently for construing taxability within section 65(19) of the Act. The judgment has been affirmed by the Hon'ble Kerala High Court [(2013 (29) S.T.R. 554 (Ker.) and by Apex Court [(2016 (42) S.T.R. 418 (S.C.). (b) The Appellant had also relied on the judgment of Malabar Management Services Pvt. Ltd. [2008 9 STR 483 Tri Chennai, wherein the Tribunal held that reimbursement....
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....ty for the purpose of general repair and maintenance. The Tribunal held that the appellants cannot be held as provider of 'Maintenance or Repair Services' as they are only paying on behalf of various buyers of flats to various authorities (Municipal Corporation, Revenue authorities etc.) and various service providers (such as security agency, cleaning service providers etc.) and they are not charging anything on their own account. The payments are made cost on cost basis and the same is debited from the deposit account. The Tribunal held that Appellants act only as trustee or as pure agent. (f) Further this Tribunal in the Appellant's group entities cases of M/s. Omega Associates [2016-TIOL-490-CESTAT-MUM]. M/s. Green Valley D....
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....ot taxable. This contention of the appellant is based on the judgment in case of Reliance ADA Group Pvt Ltd(supra), Raheja Universal(Supra) and Malabar Management Service Pvt Ltd(supra). In all these cases issue was decided on the basis that any service to the group company does not amount to provision of service as per the Finance Act, 1994 on the doctrine of mutuality. To arrive at this conclusion, first, the fact whether the so called group companies are related companies or otherwise need to be ascertained. It is necessary to ascertain the constitution of each so called group company on the basis of share holding pattern. It is observed that the adjudicating authority has not verified such facts. This Tribunal on the identical issue in ....
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....y, who shall pass denovo adjudication order after ascertaining the position on the fact as well as on law point as per our above observations. From the above order, it can be seen that issue is more or less same and in this case also the fact of the group company as regard the share holding pattern since not verified, matter needs to be remanded back to the adjudicating authority. Accordingly, we remand the matter related to the above issue to the adjudicating authority to pass a fresh order after consideration of observations made in the above judgment of this tribunal. As regard the health and fitness centre service, it is observed that appellant have been paying service tax under the category of club or association since 2005. It is the....