9911796707
TMI Blog2013 (9) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... ive year cannot lead to the inference that such assets or liabilities were distinct. So, at this prima facie stage, we are accepting by the certificate given by the Chartered Accountant. Salary paid to Foreign Employees - Man-power Supply Agency 66A - Technical Know-how - whether the activity undertaken by the assesse could come under the category of Man-Power Supply Agency u/s 66A - Held that:- In the case of "Salary paid to employers", we find that the demand involved is paid in India to the employees in India and no part of it seems to have been remitted to the parent company abroad. If that be the case, we are, prima facie, not convinced with the arguments put forth by Revenue regarding taxability under the category of "Man-power Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such liabilities had not been paid properly for the period Apr.'06 to Sept.'09. A Show Cause Notice for recovery of service was issued. On adjudication a demand for tax amount of Rs.2,63,60,667/- is confirmed against the appellant along with interest under Section 75 of the said Finance Act, 1994 and penalty of equal amount under Section 78 of the said Act and also imposed penalty under Section 76 of the said Act. 2. Aggrieved by the order the applicant has filed a stay petition for waiver of pre-deposit of dues arising from the impugned order. They have already paid an amount of Rs.1,14,93,220/- which stands appropriated in the O-I-O and the present stay petition is in respect of the remaining amount of about Rs.1.48 crores. 3. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be paid. 5. In the case of "Salary paid to Foreign Employees", the applicant's contention is that the foreign employees came on deputation to the applicant-Company as "Foreign Service Employees". The Counsel submits that they had the right of supervision and control over the Foreign Service Employees, which indicates employer-employee relationship between appellant and those employees. The salaries were paid in India during the term of their employment. According to the applicant, no service tax was payable on such amounts as appointment of a person as employee docs not lead to provision of service by the employer to the employee or vice versa. The applicant also submits that an employee cannot be viewed to be different from the empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices, they would have been eligible for CENVAT credit on such services. Thus, he relies on the argument of revenue neutrality because the entire demand is made by invoking the extended period of time. 8. Opposing the prayer, the learned Authorised Representative for Revenue draws our attention to paragraph 10.1 [P.No.45 of the O-I-O] indicating the sources from which the figures were taken for each of the financial year. It is his argument that these sources are distinct and hence amounts are not the same. 9. In the case of "Salary paid to Foreign Employees", he draws our attention to para 11.1.0 and para 11.1.1, wherein it has been specifically mentioned that these transactions are between related parties and the service contract of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of consecutive year cannot lead to the inference that such assets or liabilities were distinct. So, at this prima facie stage, we are accepting by the certificate given by the Chartered Accountant. 12. In the case of ''Salary paid to employers", we find that the demand involved is paid in India to the employees in India and no part of it seems to have been remitted to the parent company abroad. If that be the case, we are, prima facie, not convinced with the arguments put forth by Revenue regarding taxability under the category of "Man-power Supply Agency" under Section 66A of the Finance Act, 1994. In the case of "Technical Testing Service," the argument of the Revenue is that drawal of sample was done in India. There are also other smal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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