TMI Blog2019 (7) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... supply agency. This particular observation is sufficient for us to hold that the adjudicating authority below has wrongly concluded for the impugned arrangement to be the service of manpower recruitment and supply service. Also for the reason that the contract of employment between the appellant and the Japanese experts is clear enough to express that same is a contract of employment/appointment letter calling upon the said experts into the employment of the appellant whose reporting officer has to be employee of the appellant itself. Appellant only is disbursing the Provident Fund contributions and is also deducting tax at source. These observations are sufficient to corroborate the above observations of the impugned arrangement betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services as that of Goods Transport Operator Services, Intellectual Property Right Services, Business Auxiliary Services and Manpower Recruitment Agency Services. During the course of audit, the department observed that the appellant has paid tax, on the expenses as were being paid by them to the Japanese experts/expatriates, who were deputed in their premises by their holding company M/s Yamaha Motors Company, Japan under reverse charge mechanism. Department formed an opinion that the said deputation amounts to supply of manpower supply service. Hence, a Show Cause Notice No. 193/2013 dated 11.12.2013 was served upon the appellants proposing the recovery of service tax not paid by them during the period from 1.4.2012 to 31.3.2013 along wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of disbursing the salaries to such experts. The learned Counsel accordingly prays the order still confirming the demand is liable to be set aside and thus prayed that the appeal be allowed. 4. Per contra, the learned DR while justifying the impugned order has laid down the emphasis upon the paragraphs 20.5, 20.6, 21.1, 21.2 and 22.1 of the impugned order. It is impressed upon that the Department s Circular No. 354/127/2012-TRU dated 27.7.2012 which clarifies that the cases of secondment arrangement where certain staff belonging to an organisation is placed at the disposal of a subsidiary company, will be covered by the definition of manpower supply. Accordingly, there is no infirmity in the order. Appeal is, therefore, praye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Also for the reason that the contract of employment between the appellant and the Japanese experts is clear enough to express that same is a contract of employment/appointment letter calling upon the said experts into the employment of the appellant whose reporting officer has to be employee of the appellant itself. Appellant only is disbursing the Provident Fund contributions and is also deducting tax at source. These observations are sufficient to corroborate the above observations of the impugned arrangement between the appellant and the Japanese experts to be that of a service and to not to be of manpower supply service. The circular as relied upon by the department is perused to be a draft circular. There is nothing on record abou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 involving the recruitment or supply of manpower was provided by a manpower recruitment or supply agency. Unless the critical requirements of clause (k) of Section 65(105) are fulfilled, the element of taxability would not arise. 9. The Hon ble High Court Gujarat in the case of Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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