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2019 (7) TMI 1752 - AT - Service TaxInterpretation of statute - Manpower recruitment or supply agency service - dispute straddles the pre-‘negative list’ and ‘negative list’ regimes with different meanings assigned to ‘taxable service’ under the two schemes - HELD THAT:- The issue of taxability stands covered by the decision of the Tribunal in Volkswagen India Pvt Ltd v. Commissioner of Central Excise, Pune-I [2013 (11) TMI 298 - CESTAT MUMBAI] and that this plea before the original authority had been discarded on the ground that the issue had not attained finality. The only ground cited in the impugned order for discarding the applicability of decision of the Tribunal in re Volkswagen India Pvt Ltd is the apparent lack of finality of the issue decided therein. Even if such justification was offered at that stage, the dismissal of appeal of Revenue would require it to be followed without fail as it has been rendered in identical circumstances - The decision of the Tribunal in re INA Bearings India Pvt Ltd, [2017 (12) TMI 1143 - CESTAT MUMBAI] relied upon by Learned Authorised Representative, though having taken note of the submission of relevance of the decision in re Volkswagen India Pvt Ltd, did not take the findings therein into consideration. Accordingly, the later decision does not bind us. In the impugned order, there is no finding on taxability for the period thereafter which should have been determined for conformity with section 65B(44) of Finance Act, 1994 - Furthermore, the very reimbursability of the payments made to the overseas entity has been the basis for discarding the coverage under ‘manpower recruitment or supply agency service’ and, in the context of the decision of the Hon’ble Supreme Court in re Intercontinental Consultants and Technocrats Pvt Ltd [2018 (3) TMI 357 - SUPREME COURT] declaring the provisions of rule 5(1) of Service Tax (Determination of Value) Rules, 2006, for addition of ‘reimbursable expenses’ within ‘gross value’, to be ultra vires, the coverage of such remittance within ‘service’ is not tenable. The demand for the period after 1st July 2012 is also set aside - Appeal allowed - decided in favor of appellant.
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