TaxTMI 
TaxTMI 
2019 (1) TMI 1436
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....ansaction within the definition of taxable service even though no portion of such amount collected was retained by them. 2. Narrating the background, Learned Counsel for appellant informs that they had, during the period of dispute between April 2007 and March 2010, deputed some of their employees, temporarily rendered surplus owing to lack of sufficient work, to M/s Sociedade de Fomento Industries Pvt Ltd, a 100% export oriented unit, of the same group of companies. The salaries and other compensations of these employees was settled as inter-company dues as these employees continued to be on the rolls of the appellant while operationally deployed in the other. 3. It is the finding of the adjudicating authority that this transaction was l....
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....al Board of Excise & Customs in F. no. 137/35/2011 dated 13th July 2011 that was cited in the impugned order. Furthermore, according to him, circular no. 96/7/207-ST dated 23rd August 2007 of Central Board of Excise & Customs had elaborated on the scope of taxability of 'manpower recruitment or supply agency' It is also pointed out that the decision of the Tribunal in Corborandum Universal Ltd v. Commissioner of Central Excise, Chennai [2010 (18) STR 473 (Tri. Chennai)], while dropping the demand on the activity of 'management consultancy service', did observe that the alternative classification as provider of 'manpower recruitment or supply agency' is more appropriate. 6. It would appear from the rival submission t....
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.... employees within the corporate group. 7. In the absence of any decision that provides precedent, and in the context of the issue in dispute, it would appear that we have to resort to an examination of the provisions of Finance Act, 1994 to resolve the problem. The attempt service tax authorities has been to bring the deputation of an employee whose salaries and compensation had been reimbursed by the borrowing company within the definition in section 65(105)(k) and the definition of 'manpower recruitment and supply agency' in section 65. Learned Counsel has drawn our attention to the decision of the Hon'ble Supreme Court in Union of India v. Intercontinental Consultants and Technocrats Pvt Ltd [2018-TIOL-76-SC-ST] rendered on ....