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2015 (12) TMI 547 - CESTAT MUMBAIDemand of service tax - services provided to group companies - Business Support Service, Management Consultancy Services and/or Manpower Recruitment Service & Supply Agency Service - Imposition of penalty - Held that:- Appellant's employees are rendering various services to the group companies; appellant is also recovering some amount from the group companies and recording the same as receipts under salary and wages. It is to be noted that the show-cause notice in the case in hand seeks to demand the service tax liability under "Business Support Service" and "Management Consultancy Services" for the substantial amount and a small amount towards "Manpower Recruitment Service & Supply Agency Service". We find that the services rendered by the employees of the appellant are in respect of running the business of the group companies efficiently. The top most level of the employees to the middle management and lower management levels of the employees are rendering the services which could be in support of the business of the group companies as also the advisory function in respect of various departments. In our view, the lower authorities, in this case has correctly classified the services rendered by the employees of the appellant under ‘Business Support Service' and ‘Management Consultancy Services'. We do not find any reason to interfere in such a reasoned order by the lower authorities. Accordingly, we hold that the services rendered in this case by the appellant employees are liable to service tax and the tax liability and the interest thereon as confirmed by the Adjudicating authority and upheld by the first appellate authority are correct and no interference is called for. - However, penalty is set aside - Decided partly in favour of assessee.
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