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2018 (1) TMI 1087 - AT - Service TaxDemand of service tax - Manpower Recruitment Supply provided to Group Companies - Held that: - Since the appellant is not a professionally manpower supply agency and merely sharing the staff amongst the group companies and got the reimbursement of cost from such associate company, the same should not be considered as rendering of the taxable service for the purpose of levy of service tax. Further, there is no relationship between the appellant and its associated company as “client” and a “service provider”. Thus, in absence of providing of any service to the clients as contemplated in the definition of taxable service, the activities of the appellant will be outside the scope and purview of Service Tax under the category of manpower recruitment or supply agency service. CENVAT credit - demand for non-maintenance of separate records in terms of Rule 6 (3) ibid - Held that: - own trading of securities cannot be termed as exempted service and accordingly, the provisions of rule 6 (3) ibid will not applicable for maintenance of separate records/accounts. The present finding is only on this limited aspect of application of Rule b (3). The basic issue as to whether the Cenvat Scheme itself is applicable to such trading has not been a dispute examined in the proceedings. Penalty on Cenvat Credit of Input Services reversed during adjudication - sub-rule (3) of Rule 15 ibid - Held that: - since the dispute relates to the period 2005-06 to 2009-10, which is prior to the date of amendment of Rule 15 ibid, the rigour of said amended sub-rule will not have any application for imposition of penalty for irregular availment or utilisation of Cenvat Credit, by reason of fraud, collusion etc. - penalty cannot be sustained. Appeal allowed - decided in favor of appellant.
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