TMI Blog2015 (10) TMI 2459X X X X Extracts X X X X X X X X Extracts X X X X ..... gh provides that Manpower Recruitment Supply Agency means any commercial concern engaged in providing any services directly or indirectly in any manner for recruitment or supply of manpower temporarily or otherwise to a client, in the present case, the respondent cannot be said to be a commercial concern engaged in providing such specified services to a client. It is true that the definition is wide and would include any such activity where it is carried out either directly or indirectly supplying recruitment or manpower temporarily or otherwise. However, fundamentally recruitment of the agency being a commercial concern engaged in providing any such service to client would have to be satisfied - Decided in favour of assessee. - APPEAL NO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of manpower supply and recruitment agency services and also an amount of ₹ 61,046/- under the category of Business Auxiliary Service. Appellant contested the show cause notice on merits in respect of Manpower Recruitment and Supply Agency Service while in the case of Business Auxiliary Service they discharged the service tax liability along with interest, which was due to inadvertent error, but contested the penalty on such an amount. 3. The adjudicating authority after following due process of law, confirmed the demand of service tax liability along with interest and also imposed penalties. The adjudicating authority appropriated the amount paid by the appellant during the pendency of the proceedings. 4. The learned Chart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would amount to Manpower Recruitment and Supply Agency Service though the appellant is claiming that the amount which is received by them from the group companies is only the actual salary paid to the employees. 6. We have considered the submissions made at length by both the sides and perused the records. The undisputed fact is that the appellant is one of the group companies of Forbes Marshall. It is also undisputed that there is an arrangement of deputing the employees of the appellant to various group companies. The various group companies, where the employees are deputed, make salary payment to the appellant on actual basis is also undisputed. Based upon such factual matrix, we find that the claim of the Revenue as to the said ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itment Agency. Definition of the said term applicable at the relevant time reads as under:- Manpower recruitment or supply agency means any commercial concern engaged in providing any service directly or indirectly, in any manner for recruitment or supply of manpower, temporary or otherwise to a client . 3. Brief facts are that respondent had a composite textile mill and was engaged in manufacturing of fabrics and ready-made garments. In order to reduce its cost the respondent deputed some of its employees to its group company, who were also engaged in similar businesses. Reason for such deputation was also on certain occasions stipulated work arising for a limited period. The Tribunal recorded that there was no allegation of fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent. As pointed out by the respondent, company is not in the business of providing recruitment or supply of manpower. Actual cost incurred by the company in terms of salary, remuneration and perquisites is only reimbursed by the group companies. There is no element of profit or finance benefit. The subsidiary companies cannot be said to be their clients. Deputation of the employees was only for and in the interest of the company. There was no relation of agency and client. It was pointed out that the employee deputed did not exclusively work under the direction of supervision or control of subsidiary company. All throughout he would be under the continuous control and direction of the company. 6. We have to examine the definition o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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