2014 (12) TMI 873 - AT - Service Tax

Waiver of pre deposit - Man power recruitment services - Held that - agreement, between the appellant and their foreign entity, who has sent employees to the applicant but the agreement between the parties clearly shows that the employees which are sent to the applicants are on principal to principal basis and the applicant is having full control over the employee and all the salaries of the employees are paid by the applicant directly to the employee only. - prima facie we are of the view that the applicant does not fall under the category of manpower recruitment service under the reverse charge mechanism. Therefore, the amount paid by the applicant is sufficient in compliance with Section 35F of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994, we waive the requirement of pre-deposit of balance amount of service tax, interest and penalty and stay recovery thereof during the pendency of the appeal. - Stay granted.

Summary

The Appellate Tribunal CESTAT Mumbai found that the applicant does not fall under the category of manpower recruitment service under the reverse charge mechanism. The appellant has paid a portion of the demand, and the tribunal waived the requirement of pre-deposit of the balance amount of service tax, interest, and penalty during the appeal.