2018 (4) TMI 1464

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....company in Japan, i.e., Mitsui Chemical Industries (MCI) Japan deputed their employees for providing services in the factory premises of the appellant. Such deputation was done under the specific terms and conditions regarding the remuneration of such persons deputed from Japan. After scrutinizing the agreement between the appellant and MCI, the department was of the view that such employees were being paid by the foreign principal and not the appellant, and hence, MCI has supplied manpower from abroad to the appellant. Show cause notice dated 18.04.2013 was issued proposing to demand Service Tax under the taxable service of Manpower Recruitment and Supply Agency Services, defined under Section 65(68) of the Finance Act, 1994. After the due....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Tax will be liable to be paid. 4. Further, learned Advocate submitted that the issue is no longer res integra and is decided in their favour in various decisions. In particular, he relied on the following decisions: (a) Volkswagen India (Pvt.) Ltd. vs. Commissioner of C. Ex., Pune - I, 2014 (34) S.T.R. 135 (Tri. - Mumbai) (b) Airbus Group India Pvt. Ltd. vs. Commissioner of Service Tax, Delhi, 2016 (45) S.T.R. 120 (Tri. - Del.) 5. Heard both sides and perused the records. 6. During the disputed period, certain employees of the parent company, MCI Japan were deputed to work in the appellant's factory. We have perused the agreements between the MCI and the appellant, governing the terms of such deputations. We have also perused the E....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on perusal of the agreement, we find that the employees are under the control and supervision of the appellants and their salary is disbursed by the appellant. All the statutory obligations as an employer of PF, TDS for income tax are all fulfilled by the appellant. It is not shown in the proceedings before the lower Authority that any consideration is being paid for obtaining manpower supply service from the foreign companies. The reimbursement amount paid by the appellant to the foreign companies is relating to the cost of salaries and wages of the employees working under the appellant. In CCE v. Computer Sciences Corporation India Pvt. Ltd. (supra) the Tribunal held that for tax purposes the service provided must be by a „manpower ....