TaxTMI 
TaxTMI 
2015 (11) TMI 978
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....he issue involved in this case being the same and in respect of the same group companies we dispose of all the appeals by a common order. 4. The relevant facts that arise for consideration are during the period June 2005 to March 2010 all the three appellants had charged their group companies some amount as a consideration for deputing their employees to attend to work of the group companies. The lower authorities were of the view that such service would fall under the category of Manpower Recruitment Service or Supply Agency Service. Coming to such a conclusion, show-cause notices were issued for the demand of the service tax, interest thereof and for imposition of penalties. The contests to the show-cause notices were rejected and th....
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....the claim of the Revenue as to the said activity of deputing employees to various group companies would fall under the category of Manpower Recruitment and Supply Agency Services is incorrect. The very identical issue was before the Honble High Court of Gujarat in the case of Arvind Mills Ltd. (supra). The Honble High Court, after considering all the submissions, held that such deputation of employees would not amount to manpower recruitment and supply agency services. We reproduce the entire judgment below: "1. Revenue is in appeal against the judgment of the Customs Excise & Service Tax Appellate Tribunal ("the Tribunal" for short) dated 26.7.2013 raising following questions for our consideration:- "(a) Whether in th....
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....ited period. The Tribunal recorded that there was no allegation of finding that the respondent had deputed employees to any other concerns outside its own subsidiary companies. The Tribunal also recorded that undisputedly the employees deputed do not work exclusively under the direction or supervision of the subsidiary company and upon completion of the work they were repatriated to the respondent company. On such basis, the Tribunal held that the respondent cannot be said to be Manpower Supply Recruitment Agency and, therefore, not exigible to service tax. 4. Counsel for the Revenue vehemently contended that the definition of Manpower Supply Recruitment Agency is very wide and would include range of activities of supply of manpowe....
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....trol and direction of the company. 6. We have to examine the definition of Manpower Supply Recruitment Agency in background of such undisputable facts. The definition though provides that Manpower Recruitment Supply Agency means any commercial concern engaged in providing any services directly or indirectly in any manner for recruitment or supply of manpower temporarily or otherwise to a client, in the present case, the respondent cannot be said to be a commercial concern engaged in providing such specified services to a client. It is true that the definition is wide and would include any such activity where it is carried out either directly or indirectly supplying recruitment or manpower temporarily or otherwise. However, fundamen....