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2017 (12) TMI 1143 - AT - Service TaxManpower Recruitment and Supply Agency service - employees on deputation - the personnel on the pay roll of Schaeffler Group company located abroad have been put on assignments with the appellants. On these assignments, the personnel were expected to work under overall supervision of the appellant - Held that: - The employees deputed to appellant continues to be an employee of the foreign associated company, though suspended for this duration - It is also seen that the duration of such deputation is decided in consultation with the foreign associated company and the employee is not free to decide on his own. It can be seen that there are regulations in the foreign assignment guideline for the Schaeffler Group of companies and they apply to such assignments. It is apparent that the said foreign associated companies are engaged in the regular practice of supplying manpower and have also evolved guidelines to regulate such foreign assignments in the shape of version 4/2008. The foreign associated company has totally involved in all aspects of the deputation of its own ‘suspended’ employee - service tax is rightly levied. Extended period of limitation - revenue neutrality - Held that: - If the situation is revenue neutral, in the sense the tax paid by appellant themselves, in full, on reverse charge basis then the intention to evade cannot be alleged. The fact regarding the revenue neutrality needs verification. Appeal dismissed on the point of merits - the matter is remanded to original adjudicating authority to give findings on the issue of revenue neutrality and it’s impact on limitation and penalties.
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