TMI Blog2018 (7) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... ent involved in such deputation - demand set aside - appeal allowed - decided in favor of appellant. - Appeal No. ST/52745/2015-CU[DB] - ST/A/52428/2018-CU[DB] - Dated:- 14-6-2018 - Mr. V. Padmanabhan, Member (Technical) And Ms. Rachna Gupta, Member (Judicial) Represented by Shri Ajay Aggarwal, Advocate for the Appellant. Represented by Shri Sanjay Jain, D.R. for the Respondent. ORDER Per V. Padmanabhan: The appeal is against the Order in Original No. 19/2014-15 dated 25.03.2015. The Appellant is engaged in the manufacture of PP Compounds, falling under Chapter 39 of the Central Excise Tariff Act, 1985. The period under dispute is 01.07.2012 to 31.03.2014. 2. The principal of the Appellant company in Japan, i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod vide Final Order No. 51272/2018 dated 21.03.2018. The Tribunal decided the issue as follows: 6. During the disputed period, certain employees of the parent company, MCI Japan were deputed to work in the appellant s factory. We have perused the agreements between the MCI and the appellant, governing the terms of such deputations. We have also perused the Employee Contracts, wherein we note that during the period of deputation, when such persons were working in the appellant s factory, there was employer employee relationship between the appellant as well as the deputees. The salary was paid by the appellant to such deputees. Even the Provident Fund contribution and other social security benefits were discharged by the appellant w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply service from the foreign companies. The reimbursement amount paid by the appellant to the foreign companies is relating to the cost of salaries and wages of the employees working under the appellant. In CCE v. Computer Sciences Corporation India Pvt. Ltd. (supra) the Tribunal held that for tax purposes the service provided must be by a manpower recruitment agency and such a service has to be in relation to supply of manpower. In CCE v. Arvind Mills Ltd. (supra), the Hon ble Gujrat High Court held that deputation of employees from one company to another does not involve profit or finance benefit there is no relationship of agency and client involved in such deputation. In Volkswagen India Pvt. Ltd. v. CCE (supra) the Tribunal held whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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