2018 (1) TMI 1217

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....es and are paying service tax on the charges received from such companies. In addition, they also depute their senior officers/ management personnel to their associate/group companies for rendering advise and technical service assistance and received reimbursement of their salaries from their client companies. They were not discharging service tax on such reimbursement of salaries received by them. SCN was received proposing to demand service tax under the category of management consultancy service for the period 01.04.2004 to 31.03.2008. With effect from 16.06.2005 Manpower recruitment service was categorised as a separate service and a corrigendum to the SCN was issued for the period after 16.06.2005, proposing to demand service tax under....

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....anies. The department has raised the demand holding that these activities would fall under the category of manpower recruitment and supply agency service. The issue stands decided by the decision by the decision of the Hon'ble High Court of Gujarat in the case of Arvind Mills Ltd. (supra). The relevant portion is reproduced as under:- "4. Counsel for the 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....

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....gency means any commercial concern engaged in providing any services directly or indirectly in any manner for recruitment or supply of manpower temporarily or otherwise to a client, in the present case, the respondent cannot be said to be a commercial concern engaged in providing such specified services to a client. It is true that the definition is wide and would 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." 5.2 This Tribunal in the case of Aircel....