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TMI Blog2025 (4) TMI 1600X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi conducted an audit of records, books of accounts and other documents of the appellant during May 2009 for financial years 2004-05 to 2008-09. Thereafter, show cause notices were issued, details of which are herein below: S. No. Date of SCN Period Involved 1st SCN 20.10.2009 April 2004 to March 2009 2nd SCN 20.04.2010 April 2009 to Sept 2009 3rd SCN 20.04.2011 October 2009 to Sept 2010 4th SCN 23.03.2012 October 2010 to March 2011 5th SCN 23.04.2013 April 2011 to March 2012 2.1 The Commissioner of Service Tax (Adjudication), New Delhi vide Order-in-Original dated 01.08.2013 dropped the demand of service tax for the period 01.04.2004 to 18.04.2006 and confirmed the demand of service tax and Cenvat Credit in respect of abovementioned five show cause notices alongwith interest and penalty. 2.2 On an appeal filed by the appellant, the Tribunal vide its Final Order Nos. 60386-60390/2020 dated 29.05.2020, upheld the demand of service tax under Manpower Recruitment & Supply Agency Service ("MRSAS") on appearance fee paid to sports celebrities and other persons for participating/assisting in Chennai Open Tennis Tournament and under Programme Producer Service ("PPS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l provide all assistance in respect of hiring personnel, arranging for travel arrangements and providing administrative and book-keeping support to the company (term 1.2); company shall pay a service fee to the appellant and this service fee shall consist of a fair market value of the rental of the fully furnished space provided by IMC to the company and reimbursements of actual costs incurred by the appellant plus a mark up of 15% on such actual costs (term 2.1). 3.1 The learned Counsel further submits that the services provided to IMG UK are primarily in relation to Comperio Research Project in India which involved providing office space, hiring personnel, arranging for travel, providing administrative and book-keeping services and furnished accomodation. The services of travel, hiring of personnel, administrative and book-keeping are provided by third parties and the appellant only procured the same for IMG UK. Therefore, the services provided by the appellant are input services falling under clause (iv) of Section 65(19) of the Finance Act as BAS. However, the lower authorities held the same to be Business Support Service ("BSS") without any discussion. Findings of both the lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lities, pantry and security. Thus the services provided by the appellant are "Business Support Services"." 3.2 The learned Counsel further submits that clarification issued by CBIC vide letter No. 334/4/2006-TRU dated 28.02.2006 provides that a composite service, even if it consists of more than one service, should be treated as a single service based on the main or principal service and accordingly classified; and that outsourced services, for use in business or commerce, like transaction processing, routine administration or accountancy, customer relationship management and tele-marketing, come under BSS. 3.3 The learned Counsel further submits that renting of immovable property services were brought under the Finance Act without amendment in BAS or BSS; this confirms that mere renting of immovable property was not earlier covered under the category of taxable services liable to service tax before 01.06.2007. He further submits that as the principal service rendered by the appellant is to provide assistance in research or sponsorship, it needs to be classified under BAS. 3.4 The learned Counsel further submits that the demand is barred by limitation; the Hon'ble Apex Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 12.02.2009 which could not be verified/examined by the Audit Team carrying the audit for the period 2004-05 to 2007-08; the agreement dated 12.02.2009 can only be examined by the Audit Team conducting the audit for the relevant period i.e. 2008-09 to 2010-11; the agreement was never in the knowledge of the department till the audit was conducted for the period 2008-09 to 2010-11. 4.3 The learned Authorized Representative explains us about the frequency of the audit conducted in respect of different units as per the annual revenue collected from the units. He submits that the appellant have failed to make correct and full declaration in the mandatory ST-3 returns. 4.4 The learned Authorized Representative relies on the following case-laws: a) Days Inn Deccan Plaza vs. CST - 2016 (45) STR 502 (Mad.) b) Star India Pvt Ltd vs. CCE - 2015 (38) STR 884 (Tri. Mumbai) c) Tech Mahindra Ltd vs. CCE - 2015 (38) STR 1200 (Tri. Mumbai) d) Lovely Autos vs. CCE - Final Order No. 60233/2023 dated 01.08.2023 in Appeal No. ST/709/2011 - Tri. Chandigarh 4.5 The learned Authorized Representative further submits that the cases of Sourav Ganguly (supra), Paul Merchants Ltd (supra), Manis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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