2020 (9) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ional Inc.', for assisting them in their business operations of software development and information technology and other related support service, whether the same is liable to service tax under the category of 'Manpower Recruitment or Supply Agency Service', under reverse charge mechanism. 2. Admitted facts are that a secondment agreement was entered into between Honeywell International Inc and the Appellants on 01.01.2007 effective from 01.04.2003 with an objective to secure the services of managerial and technical personnel to assist the appellants in its business. The terms and conditions of the said agreement were as follows. a) Appellant shall request Honeywell International Inc to provide employees (the employees) who hav....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....us expenses, directly related to the secondment of the employee. 4. During the period 2005-06 to 2008-09 (up to December 2008) in terms of the above agreement two senior level engineers of Honeywell International Inc was deputed to the appellants to undertake certain specific work. They have taken charge in the position of the Managing Director and Senior Program Manager respectively. 5. For deputing two employees of Honeywell International Inc to the Appellants, Honeywell International Inc furnished a statement along with debit notes, detailing the reimbursable expenses due to them from the appellants. 6. The appellant Honeywell have paid to the parent Co.-H.I.I., such payments equivalent to the reimbursable, which works out to Rs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and control of the appellant for a fixed period of time, on temporary basis, to the appellant, falls in the domain of the 'manpower recruitment or supply agency service' within the meaning of Section 65(68) read with Section 65(105) (k) of the Finance Act, 1994; 9.2 Honeywell International Inc would be the service provider and the appellant, who receives the skilled manpower, on secondment basis, would be the service recipient; 9.3 That it was seen from the said agreement that Honeywell International Inc was to supply the services of the specified persons at specified rates agreed upon mutually; that the bills are also raised by Honeywell International Inc to the Appellants, indicating the persons supplied and the period of supply; th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t similar issue arose before this Tribunal in the case of M/s. Volkswagen India (Pvt.) Ltd. V. CCE, Pune-I - 2014 (34) S.T.R. 135 (Tri.-Mumbai) upheld in 2016 (42) S.T.R. J145 (S.C) wherein this Tribunal in para 5.1 held 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." Revenue had filed appeal against the order of this Tribunal which was dismissed by Hon'b....