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TMI Blog2015 (10) TMI 2410X X X X Extracts X X X X X X X X Extracts X X X X ..... r Recruitment Service - Appellant's contention that they are not covered under Man Power Recruitment Service on ground that they have not utilized service and their another contention that providing of technical engineers from company is only incidental to software service is not acceptable – Demand is sustainable. Credit on input service utilized towards "Man Power Recruitment Service" during the period 10.9.2004 to 31.3.2006 - Once held that service tax is payable on Man Power Recruitment Service, appellants are entitled to avail credit on input service subject to verification by authorities - When service tax demanded, cum tax benefit is eligible on total gross value of services on Man Power Recruitment Service – Penalty set aside – Decided partly in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 (33) STR 393 (Tri.-Chennai) where the Tribunal by relying the above Hon'ble Madras High Court decision allowed the appeal and held that maintenance of computer software cannot be subjected to service tax under the entry of Management and Maintenance or Repair service prior to 1.6.2007. He also relied the Principal Bench decision of the Tribunal in the case of VGL Softtech Ltd. Vs CCE Jaipur - 2013 (31) STR 123 (Tri.-Del.). 3.2 On the second issue, viz. man power recruitment or supply agency service, he submits that they are not covered under the definition of man power recruitment or supply agency service and they are providing IT services which is a specialized service. They are not recruiting any person and the service became taxable only w.e.f. 16.5.2008 where the software services brought under service tax net. He further submits that if Man power recruitment service is held to be taxable, they are entitled to avail cenvat credit on various input services availed during the relevant period. He submits that during that period they were entitled to avail upto 20% of cenvat credit on the input services. He drew our attention to para-25 of OIO wherein they have submitted befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of rules . The demand is also hit by limitation. 6. We have carefully considered the submissions of both sides and perused the records. The main issue to be decided in the present appeal relates to demand of service tax under the "Maintenance or repair Service" for the maintenance of computer software services rendered by the appellant and under the category of "Man Power Recruitment or Supply Agency Service". The adjudicating authority has confirmed the demand in respect of both the services and also appropriated part of the amount already paid by them in the impugned order in respect of both the services. 7. As regards the maintenance of computer software provided by the appellant, the period involved is July 2004 to March 2006. The adjudicating authority in the impugned order confirmed the service tax on the ground that there was specific Notification No.20/03-ST dt. 21.8.2003 which exempted service tax on the maintenance of software services and the said notification was withdrawn/rescinded by Notification No.7/2004 dt. 9.7.2004 and concluded that service tax is leviable on maintenance or repair of computer systems which includes maintenance of softwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating authority discussed the issue at length in his findings. The definition of "Man Power Recruitment or Agency Supply Service" is wide enough to include any commercial concern engaged in providing any service, directly or indirectly in any manner for recruitment or supply of manpower, temporarily or otherwise to a client. The appellant's contention is that they are not covered under Man Power Recruitment Service on the ground that they have not utilized the service and their another contention that providing of technical engineers from the company is only incidental to software service is not acceptable. Accordingly, the service tax demand in respect of Man Power Recruitment Service is sustainable. 9. We find that appellants also claimed cenvat credit on the input service utilized towards "Man Power Recruitment Service" during the period 10.9.2004 to 31.3.2006 whereas the adjudicating authority confirmed the demand of service tax but failed to give any findings on the admissibility of cenvat credit. We find that once it is held that service tax is payable on Man Power Recruitment Service, the appellants are entitled to avail cenvat credit on the input se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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