TMI Blog2018 (9) TMI 1729X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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. - ST/244/2012, ST/228/2012 - Final Order No. 42478-42479/2018 - Dated:- 26-9-2018 - Ms. Sulekha Beevi, C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) For the Assessee : Ms. Nancy, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was no relationship of service provider and service recipient and hence they are not liable for service tax in respect of these companies during the period of the dispute. The lower appellate authority found that there is no material evidence to prove that the asessee is an agency for supply of manpower and that there is no finding regarding the agreement between the assessee and the individual for used of the services of that individual to their clients for a consideration. For these reasons, the LAA found that the services provided to such group companies will not come under the category of MRSA services. The LAA held that though service tax is liable to be paid on the said service, the SCN is time-barred; that since accounts of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment is ₹ 20 Lakhs. In the present case, the demand of service tax ₹ 18,23,910/-, which is less than the above amount, hence department may be dismissed under litigation policy. 4. On the other hand, Ld. A.R Shri A. Cletus with regard to assessee s appeal submits that there is nothing wrong in the ruling of the Commissioner (Appeals) advising the assessee to pay up the amount under Section 73 (3) of the Act. With regard to department appeal, he reiterates the grounds of appeal. 5. Heard both sides and have gone through facts. 6.1 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the continuous control and direction of the company. 6. We have to examine the definition of Manpower Supply Recruitment Agency in background of such undisputable facts. The definition though 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. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lapross Engineering on time-bar, nonetheless, the lower appellate authority has opined that payment of service tax with interest could be settled under Section 73 (3) of the Act. In our opinion, the option to pay up the service tax under Section 73 (3) of the Finance Act, 1994 is made only at the initial stage when the escaped liability is brought to the notice of the assessee by the department or by the assessee on their own accord. In such a situation, once the assessee pays up the tax liability with interest thereon, no further SCN is required to be issued. However, 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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