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2018 (9) TMI 1729 - AT - Service TaxMan Power Recruitment Agency and Supply Service - appellant have deputed the employees to their sister concern or units and collected deputation charges from the latter - Held that:- The scope of service tax liability in respect of the activity of staff to subsidiary / group companies is no longer res integra - The Hon’ble High Court in the case of CST Vs Arvind Mills Ltd. [2014 (4) TMI 132 - GUJARAT HIGH COURT], has held that subsidiary companies cannot be said to be client of holding company and the deputation of employees was only for and in the interest of the company; there is no relation of agency and client. Section 73 (3) of the Finance Act, 1994 - Held that:- In the present case, a SCN has very much been issued and the adjudication thereof has culminated in confirmation of the demand. At such a later stage, if the LAA finds that demand is time-barred, he should only set aside the demand on that ground but cannot advise assessee concerned to discharge the disputed amount through Section 73 (3) ibid - assessee cannot be said to be discharge the disputed amount through Section 73 (3) ibid. Appeal allowed - decided in favor of appellant.
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