Levy of service tax - Employees were deputed to the assessee - ...

Service tax applicable on deputed employees; extended limitation period not justified due to lack of fact suppression evidence.

May 8, 2024

Case Laws     Service Tax     AT

Levy of service tax - Employees were deputed to the assessee - receiving services from the overseas company FFECJ through Dispatch Agreement and Secondment Agreement in deployment of qualified and skilled employees during the said period - The Tribunal noted that the employees deputed to the respondent were under its control and direction, with no employer-employee relationship maintained with the overseas company during the assignment period. They upheld the Revenue’s contention regarding the taxability of the services. However, they ruled against the validity of invoking the extended period of limitation, finding no substantial evidence of suppression of facts by the respondent.

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