TMI Blog2018 (12) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... recruitment or supply agency. Unless the critical requirements of clause (k) of Section 65(105) are fulfilled, the element of taxability would not arise - demand not sustainable. Demand of interest - Held that:- As service tax has been paid at that time, in that circumstances, no interest has been payable by the appellant - demand of interest not sustainable. Business Support Services - Held that:- The group entity has merely arranged certain services for Colt group as a whole, the cost of which is being shared between the group companies. Such sharing of expenses without provision of any services cannot be said to result in provision of a taxable service under Business Support Services - no service tax is payable by the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mport of Manpower Recruitment or Supply Agency Services in respect of expat employees where assignment letters were issued prior to 16.06.2005 but the said services are received after 16.06.2005 (d) non-payment of service tax on reimbursements made in foreign exchange in relation to tax compliance cost incurred by overseas group entity on behalf of the appellant; and (e) non-payment of interest for delay in payment of service tax in respect of services received from associated enterprises where invoices have been raised on amount accrued in books of accounts prior to 10.05.2008, but service tax has been deposited after 05.06.2008. The adjudicating authority has confirmed the demand proposed in the show cause notice along with inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7) STR J57 (SC). He also submits that without accepting that the group companies are rendering manpower supply services to the appellant, value of such services is limited to the amounts paid by the appellant to the group companies on which the appellant has already discharged service tax and on which there is no dispute. The expenses incurred in India in relation to the expat employees are not includable in the value of such services. He relied on the decision of the Tribunal of Delhi in the case of Intercontinental Consultants and Technocrats Private Limited vs. Union of India 2013 (29) STR 9 (Del.) which has been affirmed by the Hon ble Apex Court in 2018 (10) G.S.T.L. 118 (S.C.). He further submits that no service tax is pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant particularly in the case of Computer Sciences Corporation India Private Limited (supra) wherein the Hon ble High Court has observed as under:- 8. In the present case, the Commissioner clearly missed the requirement that the service which is provided or to be provided, must be by a manpower recruitment or supply agency. Moreover, such a service has to be in relation to the supply of manpower. The assessee obtained from its group companies directly or by transfer of the employees, the services of expatriate employees. The assessee paid the salaries of the employees in India, deducted tax and contributed to statutory social security benefits such as provident fund. The assessee was also required to remit contribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e take a note of the fact that a demand of ₹ 5,38,819/- has been confirmed on account of interest. We find that as and when although bills have been raised earlier, but as and when the appellant has paid the bill payment of service tax during the relevant period. The same was the provision that as and when the remuneration with regard to the service has been paid the liability of service tax arises. As service tax has been paid at that time, in that circumstances, no interest has been payable by the appellant. 10. However, we find that a demand of ₹ 1,11,622/- has been confirmed under Business Support Services. We find that the group entity has merely arranged certain services for Colt group as a whole, the cost of which is b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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