2012 (6) TMI 693 - AT - Service Tax

Manpower Recruitment and Supply Agency Services - Plea for waiver of pre-deposit - Revenue contended that gross salary paid to the employees has to be taken into account for paying the service tax whereas applicant contended that persons, supplied by the applicant are the employees of the M/s P and the applicants are not liable to pay service tax on same, however tax on commission received is paid - Held that - Since applicant is receiving commission on monthly salary, the applicants are covered under Manpower Recruitment and Supply Agency Services . Therefore, applicant has failed to make out a case for 100% waiver of pre-deposit of the demand. Accordingly, applicant is directed to make a pre-deposit of 50% of the service tax within stipulated time.

Summary

The Appellate Tribunal CESTAT, Mumbai confirmed a service tax demand of Rs.3,43,795 against the applicant for "Manpower Recruitment and Supply Agency Services". The applicant failed to prove 100% waiver of pre-deposit, so they were directed to make a pre-deposit of 50% of the service tax within eight weeks. Compliance to be reported by 16.08.2012, with balance amount, interest, and penalty stayed during the appeal.