TaxTMI 
TaxTMI 
2020 (8) TMI 695
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....assed by the Commissioner of Customs and Central Excise, Hyderabad-IV. 2. Heard both sides and perused the records. 3. The appellant herein provides Consulting Engineering Services, Information Technology Services, Map Making Services, Maintenance and Repair Services and Manpower Recruitment and Agency Services and are registered with the service tax department. Show cause notices dated 22.02.2010 and 12.10.2010 were issued to the appellant demanding service tax under reverse charge mechanism on the amounts which they have paid to their subsidiaries located abroad namely M/s IEII, M/s IEEL, M/s IEG and M/s IEJ. Learned Counsel for the appellant would submit that they are engaged in providing software services to their customers abroad....
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....no. OR 125/2010-Adjn(Commr) S.Tax dated 12.10.2010 covering the period 01.04.2009 to 31.03.2010 for the services received from subsidiary companies - demand of service tax of Rs. 1,22,75,546/-. They are also contesting the interest on the above amounts and all penalties imposed. 5. Learned Counsel would submit that the demands were made in the show cause notices and confirmed by the impugned order on the amounts which they have paid to their subsidiary companies for the services. The nature of the contracts is identical in all cases. He would take the Bench through the service performance agreement dated 01.07.2006 entered into between the appellant (IEL) and their subsidiary Infotech Enterprises America Inc. (IEAI). The relevan....
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....EAI shall allocate qualified personnel to respond to such Error reports, verify the Error(s), classify them, and report them to IEL. 3.4 Error Correction: IEAI shall provide Error correction(s) in the form of interim service packs as directed by IEL and shall incorporate such Error correction into the next Release of the Software Services. Obligations of IEL and IEAI 1. IEAI's Obligations: • IEAI's obligation is to render / develop Software / Software Services in accordance with the specification provided by IEL. • IEAI does not assume any responsibility regarding any defects in the Software / Software Services to any third party. 2. IEAI's Obligations: • Un....
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.... man power is also brought under service tax and the name of the service had been changed to "Manpower recruitment and supply agency's services". 'Manpower recruitment or supply agency' has been defined under Section 65(68) of the Finance Act, 1994 with effect from 16.06.2005, as under: "Manpower recruitment or supply agency" means any commercial concern engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to a client. Section 65(68) of the Finance Act, 1994 as amended by the Finance Act, 2006, with effect from 01.05.2006 reads as below: "Manpower recruitment or supply agency" means any person engaged in providing any serv....
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....s. As per these agreements, all of which seem to be more or less identical, the subsidiary is required to deliver software services as per the work order issued by the appellant. In return for rendering these services, the subsidiary got paid. There is nothing in the agreements to show that the subsidiary is required provide manpower to the appellant in those countries. If that was the case, the services had to be performed by the appellant themselves at the customers' end. Instead, the entire delivery of software service has been out sourced by the appellant to the subsidiary and the subsidiary got paid for these services. 9. The argument of the Department is that the billing is done by the subsidiary in terms of number of manpower or m....