TMI Blog2018 (2) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Demand set aside - appeal allowed - decided in favor of appellant. - ST/Misc./40968/2017 & ST/40563/2013 - 42351/2017 - Dated:- 12-10-2017 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri Vishal Agarwal Advocate And Shri G. Krishnamoorthy, Advocate for the Appellant Shri B. Balamurugan, AC (AR) - for the Respondent Per: Bench The appellant has filed a miscellaneous application seeking amendment of the cause title from M/s. Sterlite Industries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s us through the definition of the manpower recruitment or supply agency service prior to 1.52006 and subsequent to that period. He submits that they were not a manpower recruitment or supply agency service but were only deputing some of their own personnel to group companies. He submits that the matter is no res Integra and has been decided in their favour in the following case laws: (a) Krohne Marshall Pvt. Ltd. Vs. Commissioner of Central Excise reported in 2015-TIOL-CESTAT-MUM (b) Spirax Marshall P. Ltd. Vs. Commissioner of Central Excise reported in 2016 (44) STR 310 (Tri. Mum) (c) Vidarbha Iron Steel Co. Ltd. Vs. Commissioner of Central Excise reported in 2016 (44) STR 310 (Tri. Mum.), (d) Arvind Mills Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 [hat the claim of the Revenue as to the said activity of deputing employees to various group companies would fall under the category of Manpower Recruitment and Supply Agency Services is incorrect. The very identical issue was before the Hon'ble High Court of Gujarat in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly 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 subsidiary companies. The Tribunal also recorded that undisputedly the employees deputed do not work exclusively un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isites 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 definition though provides that Manpower Recruitment Supply Agency means any commercial concern engaged in providing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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