|Custom, Excise & Service Tax Tribunal
Service Tax Not Applicable on Placement Fees Collected from Students Under 'Manpower Recruitment' Definition : CESTAT Mumbai
CESTAT Mumbai rules that placement fees charged by educational institutions to students-not employers-do not constitute 'manpower recruitment or supply agency service' under Section 65(105)(k) of the Finance Act, 1994. The decision clarifies that service tax liability arises only when institutions act as intermediaries for employers, shielding academic bodies from retrospective tax demands.