2012 (11) TMI 642

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..... for modification - their activities as mere ‘manpower supply agency services’ may not be appropriate - stay granted.
S/Shri P.G. Chacko, M. Veeraiyan, JJ. REPRESENTED BY : Shri K.S. Ravi Shankar, Advocate, for the Appellant. Shri Ganesh Haavanur, SDR, for the Respondent. [Order per : M. Veeraiyan, Member (T)]. - Heard both sides extensively on the stay petition. 2. The appellant is a 100% EOU operating under STP Scheme. They undertake services to parties like Philips Software, Oracle and Yahoo in India. They have also rendered certain services to overseas clients by using the services of a company based in USA. The Commissioner has confirmed a demand of service tax of Rs. 1,12,86,898/- under the category of "manpower recruitm .....

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..... satisfaction of the clients and it is not a mere supply of manpower to be utilized by clients at their discretion. In this regard he also relies on the Stay Order Nos. 795-796 dated 7-9-2010 of the Tribunal in the case of M/s. Integra Micro Software Services Pvt. Ltd. & Anr. in Service Tax Appeal No. 701 and 2291/2010 [2012 (25) S.T.R. 369 (Tri.)]. 3.3 In respect of services received from overseas service providers which was sought to be taxed under the category 'business auxiliary services', he submits that a sizeable portion of the demand relates to period prior to 18-4-2006. He claims that even otherwise, no tax on these activities can be demanded from the appellants as all these are activities undertaken in USA using the services .....

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..... recruitment and supply agency service' may not be sustainable. 5.2 The activities for which service tax has been demanded from the appellants as recipient of 'business auxiliary service' prima facie have been undertaken in a foreign territory. 5.3 Regarding the decision of the Tribunal relied upon by the learned DR, we find that the case of the department before the Tribunal in that case was, "appellant has projected that they have a pool of highly skilled and specialized employees and expressed their willingness to provide them to TCS on sub-contract basis to work along with the employees of TCS." Therefore, the decision holding that the assessee therein was involved in providing the service of 'manpower recruitment and supply .....

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