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TMI Blog2018 (12) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... d., a subsidiary of the appellant, it was noticed by the Officers of the Department that the appellant had rendered Manpower Supply Service to them and collected Deputation Charges for the above said service during the period from 16.06.2005 to 31.03.2007, however without payment of service tax thereon; that they had only started paying service tax for 01.04.2007 from March 2009. 2.2 A Show Cause Notice dated 02.09.2010 was issued to the appellant proposing to demand service tax to the tune of Rs. 16,47,551/- along with applicable interest and penalty. The above proposals came to be confirmed by the adjudicating authority vide Order-in-Original dated 23.09.2011. Thereafter, the appellant preferred an appeal before the first appellate autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Arvind Mills Ltd. - 2014 (350) STR 496 (Guj.), 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. The relevant portion of the said judgment is reproduced as under : "5. It is true that in the present form, the definition of Manpower Supply Recruitment Agency is wide and would cover within its sweep range of activities provided therein. However, in the present case, such definition would not cover the activity of the respondent as rightly held by the Tribunal. To recall, the respondent in order to reduce his cost of manufacturing, deputed some of its staff to its subsidiaries or group ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otherwise. However, fundamentally recruitment of the agency being a commercial concern engaged in providing any such service to client would have to be satisfied. In the present case, facts are to the contrary." 6.2 Respectfully following the ratio already laid down, we hold that in respect of employees deputed by the assessee to their group companies we do not find any infirmity in the decision of the Commissioner (Appeals) setting aside the demand in respect of employees deputed by the assessee to the group companies. 6.3 In the event, no merit is found in respect of the grievance of the Department regarding setting aside by LAA of the demand under MRSA in respect of services provided by assessee to group companies. In any case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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. While are not able to find any fault with the finding of Commissioner (Appeals) that the said demand is time-barred as the assessee had been audited on more than one occasion earlier, we set aside that portion of the order which opines that the disputed demand could be settled under Section 73 (3) ibid. So ordered. Impugned order to this extent is set aside and assessee's appeal ST/244/2012 is allowed with consequential benefits, if any, as per law." 7.2 We find that the facts being identical, the above ruling squarely applies to the case on hand. Moreover, the Revenue was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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