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2013 (12) TMI 617 - AT - Service TaxWaiver of pre deposit - Manpower Recruitment or Supply Agency Service - Held that:- The appellant viz. M/s. BPL Ltd. has formed a joint- venture with M/s. Sanyo Electric Company Ltd., Japan and this joint- venture is called M/s. Sanyo BPL Pvt. Ltd. Under this arrangement, M/s. BPL Ltd. would ask their employees to resign, who would then join M/s. Sanyo BPL Pvt. Ltd. As some time was taken for the joint- venture to launch its business activities, M/s. BPL Ltd. continued to retain the employees and pay their salaries and wages though the employees were sitting idle. This “idle period” is from June to December, 2005. In order to compensate the loss arising out of this, the joint-venture paid Rs. 5 crores to M/s. BPL Ltd. (appellant), which was shown as ‘expenditure’ in the accounts of the joint-venture - prima facie there is no ingredients of ‘Manpower Recruitment or Supply Agency Service’ in the aforesaid transactions. Hence, there will be waiver of pre-deposit and stay of recovery in respect of the adjudged dues - Stay granted.
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