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2021 (3) TMI 465 - CESTAT NEW DELHIManpower supply service - amounts paid as salaries to the employees of the parent company working with the appellant - staff and experts are sent by the parent overseas company to the Indian subsidiary on secondment - salaries paid by the Indian company to the employees after deducting the statutory amounts, such as, Provident Fund, TDS etc.- whether such an arrangement amounts to the parent company supplying “manpower supply services” to the Indian subsidiary or not? - Extended period of limitation - HELD THAT:- This issue has been decided by various benches of this Tribunal in the case of M/S VOLKSWAGEN INDIA PVT LTD VERSUS COMMISSIONER OF CENTRAL EXCISE [2013 (11) TMI 298 - CESTAT MUMBAI], M/S NISSIN BRAKE INDIA PVT. LTD. VERSUS CCE, JAIPUR – I [2018 (5) TMI 1223 - CESTAT NEW DELHI], SPIRAX MARSHALL P. LTD., FORBES MARSHALL P. LTD. & J.N. MARSHALL P. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE I [2015 (11) TMI 978 - CESTAT MUMBAI] and COMPUTER SCIENCES CORPORATION INDIA PVT LTD. VERSUS COMMISSIONER OF SERVICE TAX, NOIDA [2014 (4) TMI 252 - CESTAT NEW DELHI]. Thus, it is now a settled legal position that in an arrangement like this, the deputed employees will be working as employees of the Indian company. The parent company is not supplying manpower to Indian company. Therefore, no service tax is payable under Reverse Charge Mechanism by the Indian company on the salaries, etc. paid to the deputed employees. No reason to hold that this arrangement is supply of manpower by the parent company to the appellant - the demand, interest and penalty imposed and the impugned order cannot be sustained - Appeal allowed - decided in favor of appellant.
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