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2014 (7) TMI 365 - AT - Service TaxCENVAT Credit - manpower supply service - payment of salary through another company - Penalties under Section 76 and Rule 15 - Held that:- appellant handed over the entire container terminal to M/s. India Gateway Terminal Pvt. Ltd. (IGTPL). While doing so, the employees who were already working in the terminal were also required to be employed by IGTPL as per the agreement between the appellant and IGTPL. The agreement stipulated that the employees would continue to be under the same conditions of employment; their wages will not be reduced and promotions etc. which are their rights would not be affected. The salary and all other benefits were to be paid by only IGTPL and the employees ceased to be the employees of the appellant. The arrangement is co-terminus with the period during which IGTPL would run the Rajiv Gandhi Container Terminal (RGCT)(container terminal). After going through the terms of agreement, we find that as contended by the learned counsel, this is nothing but handing over the operations of the container terminal and in the absence of any payment required to be made by IGTPL to the appellant for supply of man power and in view of the relationship between the employees and IGTPL being one of master and servant, it cannot be said that appellants have provided the manpower supply services to the IGTPL. Therefore we consider that the appellants have made a strong case in their favour and this demand cannot be sustained. - Decided in favor of assessee. Renting of immovable property - Held that:- Appellant is not contesting the taxability but their grievance is that service tax has been demanded even on the amount not received by them but deposited with the court because of litigation. The service tax is payable only on receipt of the service charges and therefore proportionate demand relating to the demand on the amount not received may not be sustained. - Matter remanded back - Decided in favour of assessee.
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