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TMI Blog2019 (1) TMI 1436X X X X Extracts X X X X X X X X Extracts X X X X ..... EME COURT OF INDIA] that the inclusion of value in section 66 imposing the tax on service restricted the scope of value to the service itself till the subsequent incorporation of Explanation in section 67 of Finance Act, 1994 would also lead to the further conclusion that levy of tax is permitted by law contingent upon there being a value inherent as consideration for the service and not a provision of service gratis to which a value could be assigned under the relevant Rules. There is no allegation in the SCN, or in the impugned order, that the appellant had retained any amount from out of the payment received from the group company, thus, discrediting the receipt of any consideration by the appellant. There is no provision in the relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anies. The salaries and other compensations of these employees was settled as inter-company dues as these employees continued to be on the rolls of the appellant while operationally deployed in the other. 3. It is the finding of the adjudicating authority that this transaction was liable to tax as conforming to the enumeration in section 65(105)(k) of Finance Act, 1994 for 'manpower recruitment or supply agency service.' It was pointed that, prior to 16th June 2005, the tax was restricted only to 'manpower recruitment' but thereafter extended to 'supply of manpower' whether temporarily or otherwise. 4. Learned Counsel for appellant places reliance on the decision of the Tribunal in Arvind Mills Ltd v. Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010 (18) STR 473 (Tri. Chennai)], while dropping the demand on the activity of 'management consultancy service', did observe that the alternative classification as provider of 'manpower recruitment or supply agency' is more appropriate. 6. It would appear from the rival submission that the primary reliance on behalf of the appellant is on the decisions in re Arvind Mills Ltd of the Hon'ble High Court of Gujarat which was based on a decision in re Paramount Communication Ltd. Likewise, the decision in re Spirax Marshall Pvt Ltd also traces its origin to these very decisions. On a closer examination of the decisions, we take note that the taxability was negated by the definitional applicability to commercial con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition in section 65(105)(k) and the definition of 'manpower recruitment and supply agency' in section 65. Learned Counsel has drawn our attention to the decision of the Hon'ble Supreme Court in Union of India v. Intercontinental Consultants and Technocrats Pvt Ltd [2018-TIOL-76-SC-ST] rendered on the challenge to the constitutional validity of rule 5(1) of Service Tax (Determination of Value) Rules, 2006 providing for the inclusion of all costs and expenditure incurred by the provider in the taxable value of service. In rendering the decision, one of the pleas of Revenue taken up for consideration was that the Hon ble Supreme Court had, in Union of India and Others v. Bengal Shrachi Housing Development Limited and Anr [ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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