2018 (7) TMI 1375

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....er dispute is 01.07.2012 to 31.03.2014. 2. The principal of the Appellant company in Japan, i.e., M/s Mitsui Chemical Industries (MCI) Japan deputed their employees for working in the factory premises of the Appellant. Such deputation was done under 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 30.09.2014 was issued proposing to demand Service Tax under Reverse Charge basis under the taxable service of Manpower Recruitment and....

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....rovident Fund contribution and other social security benefits were discharged by the appellant which clearly supports the arguments that the relationship was strictly in the nature of employer - employee. 7. The department has demanded Service Tax on reverse charge basis under Section 66A, considering that the employees of the principal were placed at the disposal of the appellant, and the activity is covered under the category of Manpower Recruitment and Supply Agency. We find that this issue has been considered by the Tribunal in several cases and stands decided in favour of the appellant. In the case of Airbus Group India Pvt. Ltd. (Supra), the Tribunal observed as follows: "6. The second point of dispute regarding service ta....