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2020 (3) TMI 746 - AT - Service TaxNon-payment of service tax - Manpower Recruitment and Supply Agency Service - HELD THAT:- From the facts brought out on record as well as after perusal of the Master Secondment Agreement, it is seen that M/s. NSK Ltd., Japan deputed staff to the appellants generally for a period of two or three years. The said staff were under the payroll of the relevant foreign company and the appellant is responsible for payment of salary, bonus, etc., to the employees. After the work period, they would return to the parent company. The salary package for the above deputed staff is in the designated foreign currency; part of the salary was disbursed to the staff in India and the balance was disbursed to their account in the home country. It is established from records that there is no temporary supply of manpower being provided by M/s. NSK Ltd., Japan/Home Companies while deputing the employees to the appellant. The said activity does not fall within the definition of ‘Manpower Recruitment and Supply Agency Service’- the demand under Manpower Recruitment and Supply Agency Service cannot sustain. Demand of service tax - Computer Network Service (on-line information and database access and/or retrieval service) - HELD THAT:- It is seen from the invoice that the appellant has paid the amount to M/s. NSK Ltd., Japan. In fact, the services have been provided by M/s. NSK Network and Systems Co. Ltd., Japan to M/s. NSK Ltd., Japan. M/s. NSK Ltd., Japan has collected the cost share that was to be paid by the appellant and then paid it to the service provider viz., M/s. NSK Network and Systems Co. Ltd., Japan. The amount has been paid by appellant vide invoice raised on M/s. NSK Ltd., Japan and not to M/s. NSK Network and Systems Co. Ltd. who have provided the service of software support, liaison support, etc., for networking. Since there is no evidence of a service provider-service recipient relationship with M/s. NSK Ltd., Japan to whom appellant made payment with regard to this service, the demand made under this category cannot sustain. Consulting Engineer Service - Appellants have paid Service Tax under the said category, but however, did not include the amount paid in the nature of travel expenses, etc. - HELD THAT:- There are no hesitation to conclude that the levy of Service Tax on such amount cannot sustain - decided in favour of the assessee. Time Limitation - HELD THAT:- All the issues are interpretational in nature and litigations were pending before various fora. Therefore, invocation of extended period alleging suppression of facts, wilful mis-statement, etc., is without any basis. The department has not produced any positive evidence to prove their allegation of wilful mis-statement or suppression of facts - the appellant succeeds on limitation as well. Appeal allowed - decided in favor of appellant.
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