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2015 (11) TMI 978

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..... s control and direction of the company. - Decision in the case of Krohne Marshall Pvt. Ltd. [2015 (10) TMI 2459 - CESTAT MUMBAI] followed. Impugned orders before us are unsustainable and liable to be set aside - Decided in favour of assessee. - Appeal No.ST/660, 661/11 – Mum & Appeal No.ST/593/12- Mum - Final Order Nos. A/3311-3313/2015-WZB/STB - Dated:- 15-9-2015 - Mr. M.V. Ravindran, Member (Judicial) And Mr. C.J. Mathew, Member (Technical) ORDER Per: M.V. Ravindran: All these three appeals are directed against Order-in-Original No. PI/Commr/ST/23 24/ 2011 dated 30.08.2011 and Order-in-Appeal No. PI/RKS/121-122/2012 dated 23.05.2012. 2. Heard both sides and perused the record. 3. The issue involved in this case .....

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..... ruitment Service or Supply Agency Service. We find that the identical issue has been decided by this very bench in vide order no. A/2503/15 dated 22.07.2015 in respect of the group companies of the very same appellant. 6. We have considered the submissions made at length by both the sides and perused the records. The undisputed fact is that the appellant is one of the group companies of Forbes Marshall. It is also undisputed that there is an arrangement of deputing the employees of the appellant to various group companies. The various group companies, where the employees are deputed, make salary payment to the appellant on actual basis is also undisputed. Based upon such factual matrix, we find that the claim of the Revenue as to the s .....

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..... Recruitment Agency. Definition of the said term applicable at the relevant time reads as 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 .....

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..... he respondent. As pointed out by the respondent, company is not in the business of providing 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 defini .....

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