TaxTMI 
TaxTMI 
2018 (12) TMI 81
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....ber 2011. 2. The facts of the case are that the appellant has entered into an agreement with its group companies for secondment of employees of group companies to the appellant, whereby the group companies have seconded their employees to the appellant and the appellant makes payment of direct costs incurred by the group companies without any mark-up. On the direct costs, the appellant was payment service tax under Manpower Supply Service under reverse charge mechanism. The proceedings were initiated against the appellant by issuance of show cause notice proposing demand of service tax alongwith interest and penalties on the following ground:- (a) Expenses incurred in India in relation to transport, housing, education and other utilities;....
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....n Ltd-2015 (37) STR 62 (All.) and the decision of the Tribunal in the case of Volkaswagen India Private Limited vs. Commissioner of Central Excise, 2014 (34) STR 135 (Tri.-Mum.) to say that the issue with regard to the payments made to such employees itself has been settled in favour of the appellant. Therefore, there is no tax liability on such payments; the question of adding certain extra considerations to such liability does not arise. 4. He further submits that the demand has been calculated incorrectly as for the period prior to 18.04.2006, no service tax is leviable on services received from outside of India prior to 18.04.2006 as per the decision of the Hon'ble Bombay High Court in the case Indian National Shipowners Association vs....
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....he submits that the appellant is not liable to pay interest in respect of the services received from associated enterprises where invoices have been raised or amount accrued in books of accounts prior to 10.05.2008 but service tax paid after 05.06.2008. The appellant has paid service tax as and when payment thereof was made by the appellant to the associated enterprises during the relevant period. The assessee was required to pay service tax as and when payment of services rendered has been paid. Therefore, no demand of interest is sustainable. 6. Ld. AR appearing on behalf of the Revenue reiterated the findings of the impugned order. 7. Heard the parties and considered the submissions. 8. Considering the fact that the tax liability with....
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....ia Private Limited (supra) has observed as under:- "5.1 In view of the clauses of agreements noticed herein above and other facts, we hold that the global employees working under the appellant are working as their employees and having employee-employer relationship. It is further held that there is no supply of manpower service rendered to the appellant by the foreign/holding company. The method of disbursement of salary cannot determine the nature of transaction. 5.2 Further, in view of the rulings relied upon by the appellant as aforementioned, we find that the facts are covered on all four corners and accordingly, the appeals are allowed and Orders-in-Original are set aside." Therefore, we hold that the demand of service tax on this....