9911796707
TMI Blog2015 (5) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... poration, USA, their associate foreign company towards expenses incurred by them on behalf of the appellant/assessee. On Further scrutiny of the related documents, it appeared to department that part of such reimbursement was towards salary of some employees of the said associated company then working for the assessee/appellant in India. After considering the reply to the audit party's query, departmental officers felt that the transaction between Lear Corporation, USA and the services of appellant/assessee would fall under the category of "manpower recruitment or supply agency services" and by reverse charge mechanism, the appellant/assessee is liable to discharge the service tax liability. Coming to such conclusion, a show-cause notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance has been placed was entered for codification of the arrangements held in place. He would submit that identical issue in the case of Computer Science Corporation India Pvt. Ltd. vs. CST - 2014 (35) STR 94 (Tri-Del) was held in favour of the assessee. He would submit that the Revenue aggrieved by the order of the Tribunal preferred an appeal before the Hon'ble High Court of Allahabad and the same was also dismissed by the Hon'ble High Court. He would also rely upon the decision of the Tribunal in the case of Arvind Mills Ltd., vs. CST - 2014 (34) S.T.R. 610 (Tri. - Ahmd.) wherein -Arvind Mills Ltd. had deputed various employees to their own group companies for functioning as the employees of the group companies. It is his s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanism under the category of "Manpower Recruitment or Supply Agency Services", on payments made by them to Lear Corporation, USA; it is undisputed fact that the amounts which are paid by the appellant to Lear Corporation, USA are reimbursement of amounts paid by Lear Corporation, USA to the Government therein towards the social security funds of the employees who are deputed to Lear India, the appellant herein. 5.2 The adjudicating authority has held that the services rendered by Lear Corporation, USA would fall under the category of "Manpower Recruitment or Supply Agency Services". The reasoning given by the adjudicating authority is that the employees of Lear Corporation, USA are sent on deputation to Lear India and the transaction of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al deputation of the employees to Lear India and it is specifically mentioned in the said agreement that Lear Corporation, USA is not providing any services to Lear India by deputing the employees. The same clause also talks about the deputed personnel will be taken into employment by the appellant/assessee and shall work under direct Control and Management of the appellant/assessee during the entire period of their employment and; that the deputed employees will be proceeded against in terms of the disciplinary issues on the same terms as the appellant/assessee's own employees. In short, we find that entire agreement, on which reliance has been placed by the Counsel of the appellant indicates that the personnel who are deputed to India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich 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. Unless the critical requirements of clause (k) of Section 65(105) are fulfilled, the element of taxability would not arise". 5.6 It can be seen that on an identical issue, the Hon'ble High Court of Allahabad has held that the services rendered cannot be classified as "Manpower Recruitment and Supply Agency Services". In view of the foregoing, we hold that the impugned order is unsustainable and li ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
