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2010 (3) TMI 328 - AT - Service TaxTaxable Services – Classification –Section 65A – manner of classification – recruitment and manpower supply service versus information technology service - Department’s case against the appellants is primarily based on the fact that the appellants have recruited the entire staff only on the basis of requirement of Pfizer. - Held that: appellants that the work force recruited and retained by the appellants are required to work under a project manager appointed by the appellants who has to act as single point of contact being responsible for overall management of the project. - It has to be appreciated that recruitment and training precedes provision of specialized services. - If it is accepted that the same manpower will be providing specialized functional services to Pfizer in the second phase of the contract, it is logical to conclude that the manpower has been retained with the appellants during the first phase and not supplied to Pfizer though recruitment of manpower has no doubt been done at the instance of Pfizer. - The assistance in recruitment and imparting of specialized training for the recruited personnel cannot be held against the appellants’ claim that they have not supplied the manpower but have merely recruited and retained the same for providing specialized services to Pfizer utilizing such manpower. - the nature of services required to be provided by the appellants are in the nature of information technology services as the same relates to data management.
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