2024 (11) TMI 265

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.... consist of not more than 15 persons including the Chairman of Appellant who shall be the Chairman of Governing body. All he member of governing body including the Chairman and Director of GETRI shall be appointed by the appellant with the concurrence of the Promotor Companies namely the appellant GUVNL and its subsidiaries. The objective/ purpose of the GETRI are catering to the need for training the employees of the appellant and its subsidiary companies. Thus GETRI is the associate concern of GUVNL (appellant) promoted for the primary purpose of training the employees of GUVNL and its subsidiary companies. The appellant have deputed its employees to GETRI as per MoA of GETRI for easy administration of the GETRI. As per the MoA all the em....

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....lant. He submits that the identical issue has been considered in various judgments. He placed reliance on the following judgments : Arvind Mills Ltd. 2014 (4) TMI 132 Taisei Corp. 2017 (87) Taxmann.com 180 (New Delhi) Franco Indian Pharmaceutical (P) Ltd. Appeal No. ST/368/2012 decided on 05.01.2016 3. Shri R. Nathan, learned Assistant Commissioner (Authorised Representative) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have carefully considered the submission made by both the sides and perused the records. We find that there is no dispute in the fact that so called service recipient M/s GETRI is a subsidiary of the appellant and the appellant are recovering the actual cost of the salary pa....

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....directly, in any manner for recruitment or supply of manpower, temporary or otherwise to a client". 3. Brief facts are that respondent had a composite textile mill and was engaged in manufacturing of fabrics and ready-made garments. In order to reduce its cost the respondent deputed some of its employees to its group company, who were also engaged in similar businesses. Reason for such deputation was also on certain occasions stipulated work arising for a limited period. The Tribunal recorded that there was no allegation of finding that the respondent had deputed employees to any other concerns outside its own subsidiary companies. The Tribunal also recorded that undisputedly the employees deputed do not work exclusively under the direct....

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....mbursed by the group companies. There is no element of profit or finance benefit. The subsidiary companies cannot be said to be their clients. Deputation of the employees was only for and in the interest of the company. There was no relation of agency and client. It was pointed out that the employee deputed did not exclusively work under the direction of supervision or control of subsidiary company. All throughout he would be under the continuous control and direction of the company. 6. We have to examine the definition of Manpower Supply Recruitment Agency in background of such undisputable facts. The definition though provides that Manpower Recruitment Supply Agency means any commercial concern engaged in providing any services directl....