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TMI Blog2013 (6) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... d in recruitment and supply of manpower for the group companies and the cost of expenditure towards the salaries and other administrative expenses were reimbursed to M/s.Raheja Real Estate by other group companies on actual basis from May 2006 onwards. In addition to the reimbursement of the expenditure, M/s.Raheja Real Estate also charged a sum of Rs.1.00 lakh every month for the services rendered by them and started discharging service tax liability on the said amount. The department was of the view that the services rendered by M/s.Raheja Real Estate to their group companies would come within the purview of "Business Auxiliary Services" and accordingly four show-cause notices dated 23/10/2007, 31/03/2009, 26/02/2010 & 18/04/2011 were iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the employees being to Raheja Real Estate, they have to pay the salaries and the expenditure towards the salaries are received from the group companies for disbursement. They are not in the business of promoting the services of group companies or undertaking other activities on behalf of the group companies. The employees are made available to the group companies and such employees undertake the functions assigned to them by the group companies. Therefore, the question of treating the service rendered by them under "Business Auxiliary Services" is not sustainable in law. Even if it is assumed that it is rendering business auxiliary services, the reimbursable expenses received by them from the group companies cannot be added to the taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction and maintenance of records, etc. are done by the staff of Raheja Real Estate and therefore, they would come within the purview of the Business Auxiliary Service. Accordingly he pleads for upholding the impugned order and putting the appellant to terms at the interim stage. 5. We have carefully considered the submissions made by both the sides. 5.1 After examining the memorandum of ASSOCIATION of the appellant company and the group of companies, prima facie it appears to be a case of recruiting staff for the group companies and supplying them to the group companies to deal with the activities undertaken by the group companies. Such an activity does not, prima facie, come under the purview of the Business Auxiliary services as d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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