Back
CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, BANGALORE
P.G. CHACKO, M. VEERAIYAN, JJ.
Alchemist HR Services (P.) Ltd. -Appellant
Versus
Commissioner of Customs & Central Excise, Hyderabad -Respondent
Stay Order No. 1083/2012 Application No. ST/Stay/37/2010 Appeal No. ST/77/2010
Decided On : 11-06-2012
Ravi Raghavan,Ganesh Haavanur
M. Veeraiyan, Technical Member - Heard both sides on the stay petition.
2. The appellant enrolls students who have completed courses conducted by Institute of Chartered Financial Analysts of India (ICFAI) and its affiliates under the "Alchemist Special Placement Scheme". After the course is completed, the students are assured of employment with various companies/firms with a minimum remuneration of Rs. 20,000/- per month. Towards this service, the appellants are collecting fee of Rs. 3300/- per student. These amounts are collected in advance. The Commissioner has treated the amounts so collected as towards rendering of 'Manpower Recruitment Services' and accordingly confirmed demand of Service Tax of Rs. 66,41,053/- relating to the period 2005-06, 2006-07 and 2007-08 in pursuance of show-cause notice dated 21-5-2009. He has also demanded interest and imposed penalties.
3.1 Learned advocate for the appellant, referring to the definition of 'Manpower Recruitment or Supply Agency Service', submits that the services rendered by them to the various students cannot be treated as services of 'Manpower Recruitment or Supply Agency Services' "to a client".
3.2 Learned advocate also relies on the Stay Order of the Tribunal in the case of Motilal Nehru National Institute of Tech. v. CCE [Stay Order No. ST/265/2010 (PV), dated 25-11-2010].
4. We have carefully considered the submissions from both sides and perused the records. To attract Service Tax under the category of 'Manpower Recruitment or Supply Agency', the services should be rendered to a client. Prima facie, we are in agreement with the submissions of the learned advocate that these students cannot be treated as clients to whom services of recruitment and supply are being rendered. In view of the above, there shall be waiver of pre-deposit of dues as per the impugned order and stay of recovery thereof till the disposal of the appeal.
