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TMI Blog2015 (10) TMI 1734X X X X Extracts X X X X X X X X Extracts X X X X ..... ting and confirming the employment of the personnel in India, it was for working abroad and not in India. This would, in our considered opinion, would fall under the category of export of services. - Decision made in the case of SGS India [2014 (5) TMI 105 - BOMBAY HIGH COURT] followed - Decided in favor of assessee. Business Auxiliary services - Held That:- services are collateral to the services rendered by the appellant for recruitment of the personnel for the clients situated abroad - qualifies for export of services. Further, demand of small amount of 20,132/- is confirmed with interest but penalties set aside – Decided partly in favour of the Assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... btedly the services rendered by the appellant falls under the category of manpower recruitment and supply agency services. He would submit that the demand is unsustainable for the reason that the appellant herein had recruited employees for their clients situated abroad. It is his submission that the persons recruited by the appellant are employees of the companies who are situated abroad and the employees / personnel work outside India. It is his submission that the services so rendered are export of services. It is his submission that the services under which the confirmation of demand has been done is under the category of business auxiliary services for the amounts received and recorded as commission and under manpower recruitment and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t India and engage themselves in interacting with the persons short listed and participate in the interviews, etc. in India, which would mean that the services rendered by the appellant were to be consumed in India and hence adjudicating authority was correct while confirming the demands raised. On limitation it is his submission that appellant had not declared the amounts received by them despite they being registered with the Department. 5. We have considered the submissions made by both sides and perused the records. 6. On perusal of the records, it transpires that the dispute is regarding the non-discharge of tax on the amounts received by the appellant from their clients situated abroad for the services rendered of recruitment of emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that SGS India was engaged by the company based abroad for inspection of the goods which were purchased by them from Indian companies. Revenue authorities were of the view that the said services would be taxable in India as SGS India had inspected the goods in India. Negating the proposition, Hon'ble High Court held as under: "24. In the present case, the Tribunal has found that the assessee like the respondent rendered services, but they were consumed abroad. The clients of the respondents used the services of the respondent in inspection/test analysis of the goods which the clients located abroad intended to import from India. In other words, the clients abroad were desirous of confirming the fact as to whether the goods imported comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry. It is this finding and conclusion of the Hon'ble Supreme Court which has been applied by the Tribunal in the facts and circumstances of the present case." 8. The above reproduced ratio will squarely cover work the issue in Ward in this case in favour of the appellant herein. 9. As regards the service tax liability under business auxiliary services, we find that the same ratio would apply as the services are collateral to the services rendered by the appellant for recruitment of the personnel for the clients situated abroad. We find that the ratio of the judgment of the hon'ble High Court would also cover the issue in favour of the appellant. We find the ratio of the judgments of the Tribunal in the case of Paul Merchants, GA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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