2018 (8) TMI 322

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....by way of a scheme called 'Alchemist Special Placement Scheme'. The scheme is governed by the Alchemist (Special Placement Scheme) Regulations, 2005 which are provided in the prospectus of the course enrolled by a student. The scheme is available to students of the ICFAI and its affiliates. A student enrolling for a course with ICFAI and its affiliates is given an option of registering under the scheme for securing a placement, on completion of the course. In order to register under the scheme, a student had to fill-up a separate application form and pay a prescribed fee. The application form and the fee are collected by ICFAI at the time of enrolment to the course, and are later passed on to Alchemist. Although the placement fee is receive....

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....y services' submit that placement is an activity of finding a job for a person who is on the lookout for the employment, while recruitment is an activity rendered to an organisation which is on the lookout for suitable people to work for them. It is his submission that placement services is rendered to the prospective employee while recruitment is rendered to prospective employer and both services are distinguished from each other and the statute provides for discharge of service tax liability only on the recruitment services. It is his submission that CBEC circular dated 27.07.2005 also indicates the same. It is his further submission that similar issue came up before the Tribunal in the case of Motilal Nehru National Institute of Technolo....

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....he lookout of employment and is service rendered to prospective employee which will not, get covered under the definition of "manpower recruitment and supply agency services". The activity that is sought to be taxed under the head 'manpower recruitment or supply agency services', is regarding recruitment and/or supply of manpower. We find that the Tribunal in the case of Motilal Nehru National Institute of Technology (supra) was considering identical issue wherein in para 5 and 6, the Bench held as under: "5. The period in issue in the present appeal is 1-5-2006 to 31-3- 2007. During this period, manpower recruitment or supply agency service was defined in Section 65(68) as any commercial concern/any person engaged in providing any servic....

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....al Institute of Technology, the Bench held that amount collected from the students as placement fees is not taxable under 'manpower recruitment and supply agency services'. 9. In view of the facts and circumstances of this case, we find that the decision of the Tribunal in the case of Motilal Nehru National Institute of Technology and Sydenham Institute of Management covers the issue squarely in favour of the appellant herein. The reliance placed by the Learned Departmental Representative in the case of Shramik Kalyan Samiti will not carry their case any further, as the Bench specifically recorded a fact that Shramik Kalyan Samiti (appellant) had supplied manpower to their clients namely Bhopal Sahakari Dugth Sangh Maryadit for monetary co....