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Cus - When there is nothing on record to show that appellant had connived with other three persons to import AA batteries under the guise of declaring goods as Calcium Carbonate, penalty imposed on appellant are set aside: HCCongress fields Rahul Gandhi from Rae Bareli and Kishori Lal Sharma from AmethiCus - The penalty imposed on assessee was set aside by Tribunal against which revenue is in appeal is far below the threshold limit fixed under Notification issued by CBDT, thus on the ground of monetary policy, revenue cannot proceed with this appeal: HCGST -Since both the SCNs and orders pertain to same tax period raising identical demand by two different officers of same jurisdiction, proceedings on SCNs are clubbed and shall be re-adjudicated by one proper officer: HCFormer Jharkhand HC Chief Justice, Justice Sanjaya Kumar Mishra appointed as President of GST TribunalSale of building constructed on leasehold land - GST implicationI-T - If assessee is not charging VAT paid on purchase of goods & services to its P&L account i.e., not claiming it as expenditure, there is no requirement to treat refund of such VAT as income: ITATBengal Governor restricts entry of State FM and local police into Raj BhawanI-T - Interest received u/s 28 of Land Acquisition Act 1894 awarded by Court is capital receipt being integral part of enhanced compensation and is exempt u/s 10(37): ITATCops flatten camps of protesting students at Columbia UnivI-T - No additions are permitted on account of bogus purchases, if evidence submitted on purchase going into export and further details provided of sellers remaining uncontroverted: ITATTurkey stops all trades with Israel over GazaI-T- Provisions of Section 56(2)(vii)(a) cannot be invoked, where a necessary condition of the money received without consideration by assessee, has not been fulfilled: ITATGirl students advised by Pak college to keep away from political eventsI-T- As per settled position in law, cooperative housing society can claim deduction u/s 80P, if interest is earned on deposit of own funds in nationalised banks: ITATApple reports lower revenue despite good start of the yearI-T- Since difference in valuation is minor, considering specific exclusion provision benefit is granted to assessee : ITATHome-grown tech of thermal camera transferred to IndustryI-T - Presumption u/s 292C would apply only to person proceeded u/s 153A and not for assessee u/s 153C: ITATECI asks parties to cease registering voters for beneficiary-oriented schemes under guise of surveys
 
ST - Placement fees collected from students covers expenses for organizing campus interview - recipient client must be prospective employer & consideration must flow from such employer - Not taxable under Manpower Supply services: CESTAT

By TIOL News Service

MUMBAI, MAY 19, 2016: THE issue is regarding taxability of the amount collected by the appellant from the student as placement fees.

Revenue is of the view that the said amount is taxable under 'Manpower Recruitment and Supply Agency Services'.

The Service tax liability was confirmed along with interest and penalties by the lower authorities.

In appeal before the CESTAT, the appellant submitted that they are Government of Maharashtra aided institute incorporated in the year 1983 and conduct courses in Masters in Management Studies and Post Graduate Diploma in Business Management recognized by University of Mumbai and Government of Maharashtra respectively. It is further submitted that the amount collected as placement fees from the students is nothing but amount to defray the expenses incurred by the Institute for organizing the campus interview, etc. Inasmuch as in the case of Motilal Nehru National Institute of Technology - 2015-TIOL-2975-CESTAT-ALL, on an identical issue, the demand was set aside and held in favour of the assessee.

The Bench noted that the issue is no more res integra.

Holding that the judgment of the Tribunal in the case of Motilal Nehru National Institute of Technology (supra) is very relevant, the Bench reproduced paragraphs No. 5 and 6 of the order and after setting aside the impugned order, allowed the appeal.

In passing : Paragraph 6 of the referred order is reproduced below -

"6. From the definition and the enumeration of this activity as a taxable service, it is clear that what is taxable is the rendition of any service towards recruitment or supply or manpower, temporarily or otherwise to a client. The recipient of this service is a client who receives services in the nature of recruitment of supply of manpower, temporarily or otherwise. The recipient client must thus be an employer or prospective employer and the consideration for this service must flow from such employer to the provider of the service. The placement facilitation provided by educational institutions whereunder the placement charges are collected from students and not from an employer or a prospective employer, do not, on a fair and reasonable interpretation of the taxable service as defined in the Act, fall outside the purview of either the  definitional  or enumerative  provision of the Act."

(See 2016-TIOL-1189-CESTAT-MUM)


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