INTERNATIONAL OVERSEAS SERVICES Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) SERVICE tax demand of Rs. 62,86,329/ - along with interest and various penalties under the Finance Act, 1994 have been confirmed against the applicant by way of impugned order for the period 1 -3 -2003 to 31 -3 -2007 under the category of manpower recruitment agency services and business auxiliary service. Against the said order, the applicant is seeking waiver of pre -deposit by way of this stay application. The applicant has not disputed that they are engaged in the activity of supplying manpower recruitment service to their service receivers, who is located outside India. It is their contention that their service receivers are located outside India and the persons recruited by the applicant for the service receivers are also the employed outside India. Therefore, the performance and recipient of service is outside India. As the service is to be performed are outside India, therefore, this activity is covered in export of service. Therefore, they are not liable to pay Service tax.