TMI Blog2013 (10) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... ice is by the personnel to the two companies in question and not one company providing service to the other company - So there is no taxable activity on the part of the appellant to the other to be taxed under manpower supply service taxable as 65(105)(k) and therefore, the stay petition as well as appeals are allowed - The fact that payment to employee is made by one company and there is inter-company payment of the share of the cost of the employees utilised by the other company cannot be interpreted to mean one company was providing service to the other – order set aside – Decided in favour of Assessee. - ST/169/2007-DB - Final Order No. A/10945/2013-WZB/AHD - Dated:- 26-7-2013 - M V Ravindran And H K Thakur, JJ. For the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith interest and also imposed penalties and aggrieved by such an order appellant preferred an appeal along with the stay application before the First Appellate Authority. The First Appellate Authority in the impugned order did not agree with the contention raised by the assessee and held that the appellant is liable to be taxed under the category of Man Power supply or recruitment Agency. 3. Ld. counsel appearing on behalf of the appellant would draw our attention to the show cause notice and submit that the show cause notice talks clearly, that the appellant herein are deputing some of the employee to work in the group companies and the salaries of these employees are being collected from the group companies. It is his submission that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uce the cost and expenditure has deputed employees to the group companies, who are engaged in similar business and the reason for such deputation may be for stipulated work or for limited period of time. It is also to be noted that there is no allegation or finding that the appellant had deputed their employees to any other concerns other than their own subsidiary company. It is also undisputed that the particular employee who has been deputed does not exclusively work under the direction/supervision and control of subsidiary company, but completes the work which has been directed and is repatriated beck to appellant. 7. On this factual matrix it has to be considered whether the appellant would fall under the definition of Manpower Recrui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies. The service is by the personnel to the two companies in question and not one company providing service to the other company. So there is no taxable activity on the part of the appellant to the other to be taxed under manpower supply service taxable as 65(105)(k) and therefore, the stay petition as well as appeals are allowed. The fact that payment to employee is made by one company and there is inter-company payment of the share of the cost of the employees utilised by the other company cannot be interpreted to mean one company was providing service to the other. We accordingly set aside the impugned order and allow the appeal. Stay petition also gets disposed of." 11. No other contrary decision has been brought to our notice by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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