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TMI Blog2008 (12) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... and P. KARTHIKEYAN, TECHNICAL MEMBER N. Venkataraman and G. Natarajan for the Applicant. V.V. Hariharan for the Respondent. [Order per : P. Karthikeyan, Technical Member]. - The application seeks waiver of pre-deposit and stay of recovery of the dues adjudged against Future Focus Infotech Pvt. Ltd. (Focus) in the impugned order. In the impugned order, the Commissioner demanded from Focus, an amount of Rs. 2,58,79,333 towards service tax and Rs. 5,17,586 towards education cess, applicable interest on the above amounts, imposed a penalty of Rs. three crores on Focus under section 78 of the Finance Act, 1994 ('the Act') and penalty for delay in payment of the duty due under section 76 of the Act. 2. Focus is registered with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cus under the head 'Manpower Recruitment and Supply Agency' for providing manpower to the IT majors undertake software development and maintenance during the material period. The impugned order was passed in adjudication of the above show-cause notice. 3. Heard both sides. 4. We note that there is no dispute between the parties that the technical consultancy rendered by Focus in the discipline of computer software engineering was not taxable during the material period in terms of section 65(105)(g) of the Act. The case of the revenue is that Focus had provided manpower to work for the two infotech companies as per their requirement. They were utilized by the IT majors for development, implementation and maintenance of software proje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding deliverables. Deliverables means objects deliverable, source deliverable, works materials, software, documentation etc. conceived, developed and delivered in connection with the services. The personnel lent to Infosys would carry out task orders. Task orders were statements of work and would also indicate the charges for the services. As per the contract with Infosys, Focus would be paid for services as indicated in the task orders. The payment is based on person-day rate mutually agreed. From the invoices available on record we find that the infotech companies were charged for professional charges towards programming support rendered by different personnel on the establishment of the appellants on man-month basis (TCS) or man-day (In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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