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TMI Blog2015 (12) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... e mining activity specialist. We need not go into their assertion about ability. 2. The NAC, India has employed one employee namely Steve R. Sloan. Now, in fact this employee is on the permanent roll of the NAC, US, however, his services were required by the Indian company for its activities. There is an agreement between the Indian company i.e. NAC, India and Shri Sloan, which agreement is on record and being relied upon by the applicant company. This is a tripartite agreement between NAC, US, NAC, India and Mr. Sloan. Under this agreement, the services of Mr. Sloan were to be utilized by NAC, India for a particular term. It is apparent from the agreement that so long as Mr. Sloan serves in India, all his salaries are to be paid by the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs of the agreement, there is no question of any service tax provision being applicable to the salary paid by NAC, India to Mr. Sloan 4. In our opinion, the contention is absolutely correct. We will have to go by the definition of service and if the definition of service excludes the service offered by an employee to the employer then it has to be so held. For interpreting this clause then we can not go to the past entries available prior to 2012 and can not interpret this clause on the basis of that Entries that will be against the canons of interpretation. As if this is not sufficient, then we look at the agreement which is appended with the application. The agreement is very clear to suggest that so long as Mr. Sloan is serving in Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was tried to be relied upon by Shri Dixit. However, that circular has no application as the notes appended to that circular relate not to the present period but the pre-amendment period. This is apart from the fact that the Reserve Bank of India's circular will have no bearing and will be irrelevant insofar as the interpretation of the services is concerned. 8 We. therefore, allow this application and answer the question put forth in the application in the negative, in the sense that there shall be no liability to pay service tax on the salary and the allowances payable by the applicant to the employee in terms of the dual employment agreement and such salary will not be eligible to levy the service tax as per the provisions of the Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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