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TMI Blog2019 (9) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... no obligation to pay the salary and other charges to the man power deployed by it. Considering the scope and ambit of the definition of Man Power Recruitment or Supply Agency Service , the CBEC vide Circular No.B1/6/2005-TRU dt. 27.7.2005 has clarified that in order to be categorized under such taxable service, the relevant aspect for consideration is that the staff are not contractually employed by the recipient, but come under his direction. On perusal of the contract entered into between both the sides, we find that there is no existence of service provider-service recipient relationship. Further, the appellant had also separately entered into contract with the employees deputed by the group companies, providing for payment of salar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the employees of the said companies were deputed to work in the appellant s factory. For deployment of the employees, the appellant had incurred expenditure in foreign exchange towards payment of salary to the employees. The modus operandi adopted by the appellant regarding deployment of the employees of the parent company and payment of salaries to them was considered by the department as a taxable service under the head Manpower Recruitment or Supply Agency Service , defined under Section 65 (68) of the Finance Act, 1994. Accordingly, show cause proceedings were initiated on the premise that the appellant should be liable to pay service tax under reverse charge mechanism, as a recipient of such taxable service. The learned adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oe Cambridge Investment Advisory India (P) Ltd. Vs CST Delhi -2019 (21) G.S.T.L 553 (Tri.-Del.), Lea International Ltd. Vs CST Delhi 2018 (12) G.S.T.L 166 (Tri.-Del.), TAISEI Corporation Vs CCE New Delhi 2017 (5) G.S.T.L 61 (Tri.-Del.), Nortel Networks (I) Pvt. Ltd. Vs CST New Delhi 2017 (520 S.T.R 489 (Tri.-Del.), Bain Co. India Pvt. Ltd. Vs CST Delhi 2014 (35) STR 553 (Tri.-Del.). 3. On the other hand, Ld. A.R appearing for the respondent reiterated the findings recorded in the impugned order. 4. Heard both sides and perused the records. 5. Section 65 (68) of the Finance Act, 1994 defines the taxable service under the category of Man Power Recruitment or Supply Agency to mean any person engaged in providing any servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no existence of service provider-service recipient relationship. Further, the appellant had also separately entered into contract with the employees deputed by the group companies, providing for payment of salary and other benefits. Mere transfer of fund on security reason for the benefit of the family of the employees based in abroad cannot create the tax liability under such category of taxable service. It is not the case of Revenue that over and above the amount paid to the employees or their families, any other additional amounts were charged by the overseas entities or paid by the appellant towards such deployment of the employees. Thus, under such circumstances, it cannot be said that the overseas group companies have provided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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