TaxTMI 
TaxTMI 
2018 (2) TMI 1679
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....ecuted in India. SNC, Canada entered into an agreement with Govt. of Uttaranchal and Canada Commercial Corporation (CCC) which mandated SNC, Canada to do design and other consultancy for the project in India. They have undertaken designing and other engineering technical assistance from Canada. The project office (appellant) in India was registered with statutory authorities in India as per the existing regulations and discharged service tax on the services rendered by SNC, Canada in terms of the agreement mentioned above. The dispute in the present case relates to service tax liability of the appellant with reference to certain debit entries made in their books of accounts, which are with reference to deployment of certain officers by SNC,....
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....C, Canada is expenditure to execute the said project. Such expenditure cannot be taxed separately under reverse charge. Further, he also submitted that SNC, Canada is not a manpower recruitment or supply agency. The appellant is a project office of SNC, Canada. The officers of SNC, Canada executed the work in pursuance of the contract entered into by the SNC, Canada with the Indian client and CCC, Canada Even if the appellant, a project office in India, is considered as independent entity in terms of Section 66A (2) proviso, it is clear that the appellant is not a party to any of the arrangement for deployment of officers of SNC, Canada to execute the project in India. The existence of the appellant in India is to fulfil the statutory regul....
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....financial transactions involved in execution of the said contract. We note that the appellant paid service tax on all the invoices raised by SNC, Canada to the client in Uttaranchal. This fact has been categorically asserted by the appellant and not disputed by the Revenue in the proceedings. However, based on the debit entry of the appellant with reference to various expenses for deploying officers of SNC, Canada for the project work, the Revenue entertained a view regarding tax liability on reverse charge. We note that a similar issue came before the Tribunal in Lea International Ltd. (supra) and the Tribunal observed as below :- "7. We have heard both the sides and perused the appeal records. On the first point, we note that the appell....
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....s is expenditure for LIL, Canada, which is also reflected in the appellant's accounts as per the requirement. The full income on consultancy service, as already noted, has suffered Service Tax. This is an admitted fact. The expenditure to provide such service cannot be put to Service Tax even under reverse charge basis. There is no basis either on fact or law to sustain such confirmation. 7.2 Regarding the second issue of Service Tax liability under manpower supply, we note that the same dispute came before the Tribunal as well as High Courts for decision in Computer Science Corporation India Pvt. Ltd. - 2014 TIOL 1896 (H.C.- All.-ST). The Hon'ble Allahabad High Court held that in such arrangement, the deputation of employee for executing....