TaxTMI 
TaxTMI 
2023 (11) TMI 895
X X X X Extracts X X X X
X X X X Extracts X X X X
....he government departments for improving the quality and timeliness of Date required to enable quicker decision-making and thereby improve the overall efficiency of the department. At present some of the departments owning computers are finding it difficult to obtain services of the competent computer professionals for maintenance of the systems. In view of the growing demand for computers, hereby accord sanction for constitution of an organisation under the name and style of 'Andhra Pradesh technology services Ltd' with the following objectives: - to provide consultancy to government departments and corporations in the purchase of modern office equipment including computer hardware, to provide consultancy to upgrade the computer and electronic systems of departments/corporations already possessing them, maintenance of hardware on contractual basis; development of software appropriate to the needs of user agencies and generally dealing in purchase/sale/exchange of software; provide services to operate the systems; provide consultancy to user agencies for recruitment of professionals; create computer awareness and provide detailed training to user agencies at various levels; aid d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng exemption under Not. 13/2003) Manpower Supply Service 2005-06 11,50,825 Manpower Supply Service 2005-06 11,50,825 Total 1,33,08,303 1,00,63,885 SCN No. 63/2007 Dt. 03.10.2007 (2006-07) As per SCN As per OIO Category of Service Period ST Demanded (Rs.) Category of Service Period ST confirmed (Rs.) Commercial coaching or training 2006-07 7,895 Commercial coaching or training 2006-07 7,895 Business Auxiliary Service 2006-07 44,76,167 Business Auxiliary Service 2006-07 25,68,106 (After considering the amount already paid) Manpower Supply Service 2006-07 4,39,128 Manpower Supply Service 2006-07 4,00,579 (after considering the ST already paid on Service charges) Total 49,23,190 29,76,580 SCN No. 78/2008 dated 16.10.2008 (2007-08)-ST/530/2009 As per SCN As per OIO Category of Service Period ST demanded (Rs.) Category of Service P....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is also incorrect, because APTS does not provide any coaching, they only provide the computer lab and the training itself is provided by other external organizations. He also submits that there was no demand was raised under 'Commercial Coaching' for the period 2001-02 to 2005-06, therefore, confirming under this head is beyond the scope of the Show Cause Notice. In this regard, he placed reliance on the following decisions: • Swapne Nagari Holiday Resort Vs. Commissioner of C. Ex., Raigad - 2019 (21) GSTL 559 (Tri. Mumbai) • Reliance Securities Ltd. Vs. Commissioner of Service Tax, Mumbai-II - 2019 (20) GSTL 265 (Tri. Mumbai) • J.S.E.L. Securities Ltd. Vs. Commissioner of C. EX. & S.T., Jaipur-I - 2017 (4) GSTL 8 (Tri. Del) 6. With respect to the demand under Business Auxiliary Service ["BAS"], it is the contention of the appellant that the various Government Departments/Organisations to whom the Appellant had provided services are not engaged in any business activities, but are engaged only in various sovereign functions, the activities of the appellant cannot at all be covered under Business Auxiliary Service, in terms of the decis....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the entire value billed/collected. Learned Counsel places reliance on the decision of the Hon'ble Supreme Court in UOI Vs Intercontinental Consultants and Technocrats India Pvt. Ltd. 2018 (10) GSTL 401 SC, and submits that the demand of Service tax cannot be made on the reimbursement of salary claimed by them. He further also relies on the ruling in Malabar Management Services Pvt. Ltd. Vs. Commissioner of Service Tax, Chennai - 2008 (8) STR 483 (Tri. Chennai) and Vidharbha Iron & Steel Co. Ltd. Vs. Commissioner of Central Excise, Nagpur - 2016 (45) STR 464 (Tri. Mumbai). 9. Ld. Counsel also strongly contests against the invocation of extended period. It is his submission that the Service Tax Department was aware of the activities of the appellant as early as on 25.02.2004, and subsequently some more communications (letters) were exchanged between the Department and Appellant, till February 2006. Thereafter, the show cause notice issued in March 2007 was received on 09.04.2007. Accordingly, invoking extended period of limitation alleging wilful misstatement for proposing to demand of Service tax for the period covering from 2001-02 to 2006-07, is incorrect. Further, it is....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... social or business function. Explanation. - For the purposes of this clause, "social function" includes marriage; Section 65 (105) (m) : Taxable service means any service provided or to be provided to [any person], by a mandap keeper in relation to the use of mandap in any manner including the facilities [provided or to be provided to [such person] in relation to such use and also the services, if any, provided or to be provided as a caterer. 15. At the outset, to qualify under Mandap Keeper services, there must be a service of letting out any immovable property including furniture, fixtures, light fittings etc., and which are let out for consideration for organising any official, social or business functions. From perusal of the records, it is seen that APTS is only providing computer labs to National Institute of Information Technology and other organisations, such as APTEC, who impart training to personnel of the Government and its organisations in computer awareness, it would be highly incorrect to hold that, they are providing 'Mandap Keeper Services'. From the definition extracted above, 'Mandap' means any immovable property, including furniture an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....003. 17. In terms of Appeal No. ST/361/2008, the demand with respect to commercial coaching cannot survive since there was no demand in the Show Cause Notice and therefore, the Order confirming the same is beyond the scope of the Show Cause Notice.For the periodical appeals, the demand for commercial coaching was confirmed by the impugned order for the period 10.09.2004 to 31.03.2007. As can be seen from the records, the coaching services are provided by NIIT and APTEC. APTS had no role in providing the coaching services, except letting out or providing their 'computer lab' for conducting training or coaching by other external organisations. Hence the demand of Rs. 55,745/- for the period 10.09.2004 to 31.05.2006 and Rs. 1,711/- for the period 2007-08 under 'Commercial Training or Coaching Services' is not sustainable in law. Business Auxiliary Services: 18. Definitions: From 01.07.2003 to 09.09.2004 "business auxiliary service" means any service in relation to, - (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client;....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rom 16.06.2005 (19) "business auxiliary service" means any service in relation to, - (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or services, which are inputs for the client; or Explanation.- For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client; (v) production or processing of goods for, or on behalf of, the client; (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and inclu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....computer software, digital certificate software etc. The Show Cause Notice proposed to demand service tax from APTS under 'business auxiliary services'. 20. On perusal of records, it is seen that the demand up to 09.07.2004 has been dropped on the ground that the Appellant is entitled to claim exemption under Notification 13/2003-ST dated 20.06.2003, while rejecting the contention of the Appellant that the demand of Service tax, if any would arise post 16.06.2005 on account of exemption under Notification No. 14/2004-ST dated 10.09.2004, which was withdrawn vide Notification No. 19/2005-ST dated 07.06.2005 [w.e.f. 16.06.2005]. While extending the benefit of exemption under Notification No. 13/2003-ST till 09.07.2004, the Adjudicating Authority proceeds to confirm the demand of Service tax even for the period prior to 09.07.2004 (from 01.04.2004), merely on the ground that the Appellant had failed to provide the break-up of value of taxable services under BAS for the period 10.07.2004 to 31.03.2005, which is completely illegal and cannot be sustained in law. Further, the demand for Service tax under BAS has been confirmed for the entire period of 2005-06, without accepting ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....temporarily or otherwise, in any manner;] Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, recruitment or supply of manpower includes services in relation to pre-recruitment screening, verification of the credentials and antecedents of the candidate and authenticity of documents submitted by the candidate. 24. In the instant case,the Appellant, wherever required, had deputed their employees to various Government Departments, to undertake various works relating the implementation of computers and claimed reimbursement of actual salaries of those employees, plus 10% administrative cost, from the user departments. The Appellant is contesting the value of the salaries claimed as reimbursement, as not to be included in the taxable value and have paid Service tax on the 10% Administrative charges collected, though belatedly. However, the demand has been made on the entire value billed/collected. 25. The issue is no longer res-integra as the Hon'ble Supreme Court have settled the issue of re-imbursement to rest. Our view is further strengthened by the decision of Malabar Management Services Pvt. Ltd.....