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TMI Blog2014 (11) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... i) of the Finance Act, 19942 and besides demanding interest, imposed a penalty in a like amount under Sections 75, 77 and 78. The assessee is a part of a group of companies situated in the US, UK and Singapore, among other countries, and had booked expenses during financial years 2006-07 to 2010-11. The assessee in the course of its business operations hired certain expatriate employees overseas. These employees were either directly employed by the assessee or were transferred from other Group Companies to the assessee in India. During the tenure of their employment in India, the expatriate employees performed their duties and responsibilities like other employees of the assessee in India. A letter of employment was entered into between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case the Tribunal has committed an error of Law in holding that in the light of the judgement in Volkswagen India (Pvt.) Ltd. Vs. Commissioner of Central Excise, Pune-I reported in 2014 (34) STR 135 the appeal is liable to be allowed and the impugned adjudication order is quashed; (ii) Whether on the facts and in the circumstances of the case the Tribunal has committed an error of Law in following the judgment in the case of Volkswagen India (Pvt.) Ltd. Vs. Commissioner of Central Excise, Pune-I reported in 2014 (34) STR 135 and in ruling that there is no taxability issue as there is no supply of manpower service rendered to the assessee by the foreign/ holding company and that method of distribution of salary cannot determine the natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eover, such a service has to be in relation to the supply of manpower. The assessee obtained from its group companies directly or by transfer of the employees, the services of expatriate employees. The assessee paid the salaries of the employees in India, deducted tax and contributed to statutory social security benefits such as provident fund. The assessee was also required to remit contributions, which had to be paid towards social security and other benefits that were payable to the account of the employees under the laws of the foreign jurisdiction. There was no basis whatsoever to hold that in such a transaction, a taxable service involving the recruitment or supply of manpower was provided by a manpower recruitment or supply agency. U ..... X X X X Extracts X X X X X X X X Extracts X X X X
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