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TMI Blog2019 (1) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of Rules supra, inserted with effect from 1st June 2007, is ultra vires of the Act. Consequently, the legislative intent to tax was held to be limited to the consideration for the service and the test of leviability for the taxable service would have to be overcome for bearing fruit. The obvious conclusion, therefore, is that the consideration agreed upon as recompense for a particular service is taxable. Any other receipt has to be evidenced as additional consideration for the said service to be subject to tax - the demand of tax under the head of 'business auxiliary service' should be restricted to such amount as was being discharged by the appellant on the contracted amount. Manpower recruitment or supply service - pure agent ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntative. Having entered into an agreement with a group concern of theirs, M/s Mega Top Insurance Services Ltd, for access to insurance products of the latter, tax liability was discharged on the remuneration agreed upon in the contract. However, the jurisdictional service tax authorities were of the opinion that that other remittances from the client that was claimed to be reimbursement of various other expenses incurred by the appellant on behalf of the client should also have been included in the assessable value. According to them, section 67 Finance Act, 1994, read with Service Tax (Determination of Value) Rules, 2006, requires tax to be charged on gross value and, having failed to do so, recovery of tax and penal detriments prescribe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e [2016 (44) STR 310 (Tri. Mumbai)], was affirmed by the Hon ble Supreme Court. Moreover, the decision of the Tribunal in Volkswagen India (Pvt) Ltd v. Commissioner of Central Excise, Pune I [2014 (34) 135 (Tri-Mumbai)], affirmed by the Hon ble Supreme Court, had been followed by the Tribunal in Computer Sciences Corporation India Pvt Ltd v. Commissioner of Service Tax, Noida [2014 (35) STR (Tri-Del)] and upheld by the Hon ble High Court of Allahabad in Commissioner of Central Excise v. Computer Sciences Corporation India Pvt Ltd [2015 (37) STR 62 (All.)]. 4. Learned Authorised Representative submits that the Larger Bench of the Tribunal in Sri Bhagavathy Traders v. Commissioner of Central Excise, Cochin. [2011 (24) STR 290 (Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Having heard the rival submissions, we find the dispute pertains to the amounts paid to the appellant by the other party to the contract and the inclusion of this amount so received along with the amount agreed upon as payable by the recipient of the service in the assessable value for computation of tax. In the decision of the Hon ble Supreme Court in re Intercontinental Consultants Technocrats Pvt Ltd, after examining the provisions of Service Tax (Determination of Value of Taxable Services) Rules, 2006 and section 67 of Finance Act, 1994 as amended from time to time, it has been held that, till the incorporation of the explanation in section 67 of Finance Act, 1994 with effect from 14th May 2015, sub-rule (1), of rule 5 of Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to be restricted such entities that undertook manpower recruitment and supply as their principal activity. The other set of decisions followed that of the Tribunal in re Volkswagen India (Pvt) Ltd which examined the scope of taxable service to hold that the comprehensiveness of the contract of employment precluded classification as provider of manpower recruitment or supply service. The decision of the Tribunal in re Neela Jaiswal Brothers did not have to consider the taxability of the activity but was limited to inclusion of some components of compensation in the taxable value. In re INA Bearings India Pvt Ltd, the distinguishing by the Tribunal on the nature of service provider that was the principal concern in one set of de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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