By TIOL News Service

MUMBAI, SEPT 10, 2016 : THIS is a ROM application filed by the appellant for correcting an apparent Mistake in the CESTAT final order dated 05.01.2016 - 2016-TIOL-885-CESTAT-MUM.

The Bench had held thus -

ST - Joint Employment - If indeed the intention of the parties would have been otherwise, the employer-company which takes the trouble of hiring an employee on its own rolls would have insisted on some mark-up or margin being given to it, over and above the actual cost - In the absence of such a mark-up/margin, the payments received against debit notes by one employer-company upon the other employer-companies, will not partake the character of consideration for any service, but will merely represent reimbursement of shared costs - No ST payable under BAS - Appeal allowed: CESTAT [para 7, 7.2, 8]

Incidentally, the assessee does not have any grievance with the decision of the Bench except that it feels that paragraph 7.3 in the Final order is reproduced out of context.

This paragraph read -

7.3 *  In these circumstances, we remand the matter to the Commissioner for deciding; first, the issue of classification as per the principles of classification as enumerated above, thereafter decide the aspect of valuation. It is made clear that all the issues are kept open. Needless to say that a reasonable opportunity of personal hearing may be given to the appellant. Appeal allowed by way of remand."

Be that as it may, the Bench after perusing the said paragraph observed that the same made its appearance since the Tribunal had extracted and relied upon the findings from the decision in K.Raheja Real Estate Services Pvt. Ltd. - 2013-TIOL-2363-CESTAT-MUM while deciding the present case.

Noting that the order sheet of the case records clearly indicates that the Bench had allowed the appeal, the CESTAT agreed with the submissions made by the applicant and expunged the paragraph 7.3 from its order dated 05.01.2016 as being out of context and not required.

Incidentally, we had pointed out the above while reporting this case.

(See 2016-TIOL-2371-CESTAT-MUM)