TMI Blog2015 (8) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue, the decision of the Tribunal in the case of Daurala Organics (2009 (3) TMI 99 - CESTAT NEW DELHI) will not carry the case of the revenue any further. - Relying on authoritative judicial pronouncements we hold that the impugned order is unsustainable and liable to be set aside - Decided in favour of assessee. - Appeal No. ST/08/11 - A/2295/2015-WZB/STB - Dated:- 8-7-2015 - Mr. M.V. Ravindran, Member (Judicial) and Mr. Raju, Member (Technical), JJ. For the Petitioner : Shri L. Badrinarayanan, Advocate For the Respondent : Shri J.S. Mishra, Addl. Commissioner (AR) ORDER Per: M.V. Ravindran This appeal is directed against order-in-original number 08/ST/2010/C dated 14 July 2010. 2. The relevant facts tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmission that the issue is covered by the judgements of the Honourable High Court of Gujarat in the case of Arvind Mills Ltd., v. CST 2013-TIOL-1455-T-AMD and the judgement of Honourable High Court of Allahabad in the case of Computer sciences Corporation India Pvt Ltd.,v. CST, Noida 2014-TIOL-434-CESTAT-DEL. He would produce the copies of the said judgements. 4. Learned Departmental Representative on the other side would submit that as per clause 8 of the leave and licence agreement, the employees of the appellant were to be used by FACOR during the period of leave and licence. He would submit that additional staff if any, were also to be appointed by the appellant on their rolls. This would indicate that appellant was supplying manpow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed view, the stand of the adjudicating authority holding that the service tax liability arises is incorrect for more than one reason. Firstly, we find that clause 8 of the leave and licence agreement specifically states that the employees will be on the muster roll of the appellant and salaries to be paid by the appellant on receipt from FACOR. It is undisputed that the appellant had received only the actual dues towards the employees. Secondly, the arrangement of continuation of the services of the employees by FACOR was an arrangement approved by the Hon ble High Court of the compromise scheme in order not to deprive the employees of their job and lively hood. Thirdly, there is nothing on record to show that the appellant functioned as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under:- Manpower recruitment or supply agency means any commercial concern engaged in providing any service directly or indirectly, in any manner for recruitment or supply of manpower, temporary or otherwise to a client. 3. Brief facts are that respondent had a composite textile mill and was engaged in manufacturing of fabrics and ready-made garments. In order to reduce its cost the respondent deputed some of its employees to its group company, who were also engaged in similar businesses. Reason for such deputation was also on certain occasions stipulated work arising for a limited period. The Tribunal recorded that there was no allegation of finding that the respondent had deputed employees to any other concerns outside its own s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recruitment or supply of manpower. Actual cost incurred by the company in terms of salary, remuneration and perquisites is only reimbursed by the group companies. There is no element of profit or finance benefit. The subsidiary companies cannot be said to be their clients. Deputation of the employees was only for and in the interest of the company. There was no relation of agency and client. It was pointed out that the employee deputed did not exclusively work under the direction of supervision or control of subsidiary company. All throughout he would be under the continuous control and direction of the company. 6. We have to examine the definition of Manpower Supply Recruitment Agency in background of such undisputable facts. The def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the service which is provided or to be provided, must be by a manpower recruitment or supply agency. Moreover, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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