TMI Blog2018 (6) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... s not justified. Manpower Recruitment or Supply Agency Service - reverse charge mechanism - employer-employee relationship - Department took the view that the amounts paid to the expatriates are to be considered as consideration for manpower supply and liable to Service-Tax, on reverse charge basis - Held that:- Some of the payment letters issued by the appellant to the expatriates which make it clear that such expatriates will be employees of the appellant during the period of their assignments to the appellant. Further, the Income-Tax returns filed by the expatriates clearly shows the appellant as their employer and Income-Tax has also been paid for the amounts received by the expatriates in India, under the category of salary - there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visory. Such expatriates were provided by their principal (IHM). The Department was of the view that the appellant has supplied manpower to its principal and the said service is liable to Service Tax under Manpower Recruitment Supply Agency Service falling under Section 65 (88). The Service Tax on the above amount was demanded from the appellant on reverse charge basis. 4. On the above basis, Service Tax amounting to ₹ 1,49,18,797/- was demanded under Real Estate Agent Services and ₹ 38,96,207/- under Manpower Recruitment or Supply Agency Service. Interest as well as penalties under various Sections of the Finance Act, 1994 was also demanded. With the above background, we heard S/Shri Kishore Kunal, Prashant Tahliani, Abhishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice provider of Banking and Financial Service ( B FS ) under Section 65 (12) read with (105) (zm) of the Act. (ii) The learned advocates also submitted that Service Tax is not leviable under the category of manpower recruitment or supply agency service, in respect of the expatriates whose services were placed at the disposal of the appellant by the holding company. It was submitted that the expatriates remained employees of the company for the period they were attached with the appellant. This is evident from the Employee Secondment Agreement . It was further submitted that all the expatriates considered the amounts received as salary and paid Income-Tax in India. To support this contention, they have drawn our attention to sample In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in various case laws, such an arrangement has been held to be employer-employee and no Service-Tax is leviable as held in the following case law:- a. CST vs. Computer Sciences Cooperation India Pvt. Ltd., 2015 (37) STR 62 (All.) b. Computer Sciences Cooperation India Pvt. Ltd. vs. CST, 2011 (35) STR 94. c. Bain Co. India Pvt. Ltd. vs. CST, Delhi, 2014 (35) STR 553 (Tri.). d. Volkswagen India Pvt. Ltd. vs. CCE, 2014 (34) STR 135 (Tri.) 6. The learned D.R. justified the impugned order. He submitted that the predominant nature of service provided by the appellant to IHM is real estate agency service and which lends the essential character of the service being provided. Hence, he submits that the demand of Service-Tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , IHM, it is seen that the appellant is required to render investment advisory services in connection with investment opportunities in India. It is clear that such services have been rendered relating to various companies engaged in the business of real estate. The scope of the agreement does not cover such advisory services in connection with any piece of real estate. Consequently, we are of co considered opinion that the activities rendered will not be covered within the definitions as extracted hereinabove. 11. We have also perused the various case laws cited by the appellant in their support. The above case laws not only support the view canvassed by the appellant, but also have held that such activities will be in the nature of expo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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