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TMI Blog2021 (10) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... are recruited or admitted by the university in Foreign Country, recommended by appellant in India, IDP Australia gets paid by the Australian/Foreign universities. A share of that commission is given to the appellant by IDP Australia. This scheme of arrangement clearly shows that the IDP Australia is providing services to the foreign universities and is receiving consideration for the same. Recruitment of students in India - HELD THAT:- IDP Australia has created the appellant as a fully owned subsidiary, and has sub- contracted this work to the appellant. Nothing has been brought on record in the show cause notice or in the order to show that the appellant has a direct contract with the foreign universities. There is nothing on record to sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered under the Companies Act and has its corporate office in Gurgaon. Australian universities/institutions are treated as "Education Service Providers" under the Australian law and have to follow the National Code and the "universities Australia Code of practice". In order to meet these requirements, the universities have to recruit students of high quality. Therefore, the universities entered into an agreement with M/s IDP, Australia and they pay a percentage of the tuition fee which they receive from the students to IDP Australia for its services. IDP Australia, in turn, has entered into "Student Recruitment Services Agreement" with the appellant to help recruit students from India. The duties of the appellant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Services, Office Services and also the commissions for both these services, it is but obvious that M/s IDP India were promoting the business of 'Foreign Education Service Providers' while facilitating activity of student recruitment, in India. In fact, the activity of arranging or facilitating recruitment of student in India, is the essential character of the said agreement. The nomenclature and definitions in the said agreement cannot alter the very nature of the activities performed by M/s IDP India and the essence of the said agreement which is arranging and facilitating recruitment of student in India, as an intermediary between Foreign Education Service Providers, M/s IDP Australia and the students. 6.3 Since the various service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f IDP Australia. (b) The appellant is not arranging or facilitating provision of 'student recruitment services' but is providing the "student recruitment services" on its own account to its principal, who, in turn, provide the services to the universities (c) An 'intermediary', typically arranges or facilitates the provision of a service by arranging for a third party to provide the service, which is not at all the situation here. (d) The appellant has no privity of contract with the foreign universities, it only has a contract with IDP Australia (e) IDP Australia has a contract with the foreign universities for getting the students, and receives a percentage of the fees paid by the students as commission. (f) the appellant is a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnizes IDP India as sub-contractor of that agent. This document signifies existence of a tripartite arrangement between the three parties. * As per New International Websters Comprehensive Dictionary, facilitate means to make easier or more convenient. Hence the word 'facilitate' is a more comprehensive word than 'arrange' and includes provision of part of the main service. * I Rely on case law of Mcgaw -Ravindra Laboratories [1992 (960) ELT 71 (GUJ) and Dharampal Premchand [2020 (373) ELT 423 (Tri-All.) to content that there is no estoppels in taxation matters and department can change its stand regarding the classification of a service. * The period covered in this appeal is April 2014 to September 2015, which is not overlapping wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces. The main contractor - IDP Australia, in turn, is receiving commission from the foreign universities who pay a percentage of the tuition fee to IDP Australia. From the records, we find that Revenue has not established that the appellant is acting as an intermediary between M/s IDP Australia and the foreign universities, as alleged or held in the impugned order and the show cause notice. Hence, we find in favour of the appellant on merits. 9. We also find that on the exact same services a show cause notice was issued earlier covering the period 1.4.2012 to 31.3.2013 and which was dropped holding that the services rendered by the appellant to IDP Australia, amounted to export of services. All that has changed is that DGCEI has picked up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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