TMI Blog2019 (7) TMI 1752X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order for discarding the applicability of decision of the Tribunal in re Volkswagen India Pvt Ltd is the apparent lack of finality of the issue decided therein. Even if such justification was offered at that stage, the dismissal of appeal of Revenue would require it to be followed without fail as it has been rendered in identical circumstances - The decision of the Tribunal in re INA Bearings India Pvt Ltd, [ 2017 (12) TMI 1143 - CESTAT MUMBAI ] relied upon by Learned Authorised Representative, though having taken note of the submission of relevance of the decision in re Volkswagen India Pvt Ltd, did not take the findings therein into consideration. Accordingly, the later decision does not bind us. In the impugned order, there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 75 of Finance Act, 1994, and penalty under section 78 of Finance Act, 1994 are under challenge. As can be seen, the dispute straddles the pre- negative list and negative list regimes with different meanings assigned to taxable service under the two schemes. 2. The appellant, as part of a global conglomerate, enters into secondment agreement with its foreign associates for deployment of employees of those concerns for specified periods of time and the salaries/cost of such employees remitted to the foreign associates for disbursement in their respective countries has been held to be taxable under section 65(105)(k) of Finance Act, 1994 as provider of manpower recruitment and supply agency service defined in section 65 (68) of Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 65(105) of Finance Act, 1994 and the meaning assigned by (68) manpower recruitment or supply agency means any person engaged in providing any service, directly indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person in section 65 of Finance Act, 1994, as well as the general definition of service in section 65B of Finance Act, 1994. to contend that deputation of employees by foreign associates cannot escape this description. According to him, the nature of secondment accepted universally, as evident from material available on the website of In Brief , makes it clear that the seconding entity does not retain control over the seconded employee. He further contends that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee-employer relationship. It is further held that there is no supply of manpower service rendered to the appellant by the foreign/holding company. The method of disbursement of salary cannot determine the nature of transaction. 5.2 Further, in view of the rulings relied upon by the appellant as aforementioned, we find that the facts are covered on all four corners and accordingly, the appeals are allowed and Orders--in-Original are set aside. 6. The decision of the Tribunal in re INA Bearings India Pvt Ltd, relied upon by Learned Authorised Representative, though having taken note of the submission of relevance of the decision in re Volkswagen India Pvt Ltd, did not take the findings therein into consideration. Accordingly, the la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of deputation of employees by the foreign associates to the assessee, will fall within the Manpower Recruitment or Supply Agency Service. Consequently, the assessee is liable to pay service tax in terms of Section 66A of the Act and provisions contained in the Taxation of Services (Provided from Outside India and Received in India) Rules 2006 and the provisions contained in Rule 2(1)(d)(G) of the Service Tax Rules, 1994 and Section 66B of the Act, read with Place of Provisions of Service Rules, 2012. The Service Tax is recoverable with interest under section 75 f Finance Act, 1994. which pertains only to the said activity being within the ambit of manpower recruitment or supply agency service that had ceased to exist with effect from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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