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TMI Blog2017 (6) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... ure towards various facilities like canteen, transportation, etc. were shared among group companies. Such arrangement cannot be considered as activities taxable under Business Auxiliary Services - The impugned order did not discuss the legal scope of tax entry applicable to the case in hand and the same is not sustainable. Cargo Handling Service - appellant claims that they are not a Cargo Handling Agency - Held that: - it is seen that nowhere in the proceedings before the lower authorities, the exact nature of work carried out by the appellant has been elaborated and applied to the statutory definition - there are two conditions to be satisfied. There must be a cargo accepted by the transporter for carrying the goods from one place to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal is against order dated 23.06.2011 of Commissioner (Appeals)-I, Indore. Based on the details collected from the balance sheet of the appellant, for the period 2007-08, Revenue entertained a view that an amount of ₹ 18,38,739/- shown as income, is attributable to taxable services under the category of Business Auxiliary Service , Manpower Supply Services and Cargo Handling Services . The service tax liability on these income was sought to be recovered from the appellant. The proceedings initiated against them resulted in the original order dated 27.01.2011. The Original Authority confirmed a service tax liability of ₹ 2,27,268/-on the appellant on these three services. He also imposed a penalty of equivalent amount i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are deputed, as per the requirement, to undertake certain work in the sister concern, like tin plate handling, handling of soya bean bags and supervision of certain activities for quality management. They are not a Manpower Recruitment or Supply Agency . The employees continued to be in their pay role and control and they are only collecting the expenditure of lodging and other charges in respect of other deputed employees. Such considerations cannot be taxed under Manpower Recruitment or Supply Agency Service . Ld. Counsel also relied on certain decided cases in support of his submissions. 3. Ld. Counsel also submitted that the demand is hit by time bar as there is no justification for invoking extended period. 4. Ld. AR reiterat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... teen, transportation, etc. were shared among group companies. Such arrangement cannot be considered as activities taxable under Business Auxiliary Services . In terms of Section 65(19) of the Finance Act, 1994, there should be either promotion or marketing of service or goods and various other auxiliary support services. In the arrangement, as discussed above, for availing certain facilities, the appellant is sharing expenditure with other group companies. There is no promotion activities in such arrangement. The impugned order did not discuss the legal scope of tax entry applicable to the case in hand and the same is not sustainable. 7. Regarding Manpower Recruitment and Supply Agency Services , I find that the appellant have deputed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are deputed for packing soya bean and for proper supervision of their storage in their sister concern. There is no evidence to the effect that the appellants are engaged in handling of cargo with reference to the transportation of such cargo. The Hon ble Allahabad High Court in the case of CCE Vs. Manoj Kumar - 2015 (40) STR 35 (Allahabad) held that if the cargo would not include loading or unloading for any movement to any destination, and the handling of cargo is only within the factory with reference to the storage; etc. then such activity cannot be brought under Cargo Handling Services in terms of Section 65(23) of the Finance Act, 1994. The Hon ble Supreme Court in the case of Sushil Company 2016 (42) STR 625 (SC) uphe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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