TMI Blog2016 (1) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... “Management Consultant Service”. Further from the bills issued by the appellant to their client the description of services is “Supervision Charges of Manpower”. This fact also shows that the appellant is providing services of supervision of manpower and supervision of manpower does not fall under supply of manpower. - the service provided by the appellant falls under the definition of “Management Consultant Service”, therefore it is indeed taxable. Demand of service tax confirmed with interest - penalty reduced - Decided partly in favor of assessee. - Appeal No. ST/52/10-Mum - Final Order No. A/3727/2015-WZB/STB - Dated:- 24-11-2015 - Mr. P.S. Pruthi, Member (Technical) And Mr. Ramesh Nair, Member (Judicial) For the Petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Original Order the appellant filed the appeal before the Commissioner (Appeals) who upheld the said Original Order by passing an impugned order. Aggrieved by the said impugned order the appellant is before us. 3. Shri R. G. Seth, Ld. Counsel for the appellant submits that their activities are confined to supply the manpower and supervision thereof, hence the same is not covered under the definition of Management Consultant Service . He submits that at the most, the services are covered under supply of manpower which was included under the head of Manpower Recruitment Agency with effect of 16-6-2005, therefore the services are not taxable during the relevant period i.e. 2002-03 and 2003-04. He invited our attention to the invoices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . On the other hand Shri V.K. Kaushik, Ld. Asstt. Commissioner (AR) appearing on behalf of the Respondent reiterates the findings of the impugned order. 5. We have carefully considered the submissions made by both the sides. 6. For the services provided by the appellant to their client which is the group company of appellant, they entered into a Memorandum of Understanding , which is reproduced below: Memorandum of Understanding This Memorandum of Understanding is made on 1st April, 2002, at Nagpur BETWEEN M/s. Artefact Projects Limited , Registered under the Indian Companies Act, 1956, having its Registered office at 1st Floor, Bhiwapurkar Chambers, Opp. Yeshwant Stadium, Dhantoli, Nagpur-440012 represented ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall provide and supervise expert manpower required of professional personnel s at various sites for further rendering of services for various Infrastructure projects of Party No. 2. 2. Party No. 2 shall issue a requirement sheet to the Party No. 1 giving details like job description of the candidates to be hired, the qualification of the candidates, the salary range. 3. Party No. 1 shall coordinate all interviews of candidates in coordination with recruiters of Party No. 2 and selected candidates shall be placed and deputed at various sites for further rendering of services for various Infrastructure projects of Party No. 2. 4. Party No. 1 shall supervise the manpower and shall charge 2% to 3% supervision charges as per pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so shows that the appellant is providing services of supervision of manpower and supervision of manpower does not fall under supply of manpower. We are therefore of consider view that the service provided by the appellant falls under the definition of Management Consultant Service , therefore it is indeed taxable. 8. As regard the issue of limitation, we observed that the appellant have not disclosed the facts related to their activities of services to their client before the department. They have not declared the taxable value in their ST-3 returns. In these circumstances, the department had no occasion to know the activity of the appellant, therefore, in our view, there is suppression of fact on the part of the appellant. As regard su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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