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TMI Blog2024 (11) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... he employees who are deputed at GETRI. In the same type of arrangement Hon ble Gujarat High Court considering the identical issue in the case of Arvind Mills Ltd. [ 2014 (4) TMI 132 - GUJARAT HIGH COURT] The issue is no more res-integra as under the identical arrangements within the group company, no service tax can be charged. Accordingly, in the present case having the same facts, the ratio of the above judgment is directly applicable and considering the same, the impugned order is set aside and appeal is allowed. - HON BLE MR. RAMESH NAIR ( JUDICIAL ) And HON BLE MR. RAJU , MEMBER ( TECHNICAL ) Sh. Vijay N. Tewar , Chartered Accountant appeared for the Appellant Sh. Rajesh Nathan, Assistant Commissioner ( Authorized Representative ) fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n deputation. Being the Government companies, posting of employees are subject to change at regular intervals. The appellant have recovered actual cost of salary paid to employees deputed at GETRI from it at regular interval. However there was no profit element involved in the amount recovered from the GETRI by the appellant. Further the salary cost is reimbursed by GETRI out of major source of revenue earned by way of contribution receipts. The case of the department is that on account of cost of salary recovered by the appellant from GETRI is liable to service tax under the category of man-power recruitment or supply agency service. Hence there is a demand of service tax. Being aggrieved by the impugned order, the appellant filed the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the ratio of a case decided by CESTAT Delhi in case of Paramount Communication Ltd. vs. CCE 2013 (29) STR 317 without narrating and applying the same to the facts of the present case/ (b) Whether in the facts and the circumstances the activity of the Respondent is covered under the definition of Manpower Recruitment Agency as Contemplated in C168 of S.65 of the Finance Act 1994 R/w. C1 105 (k), thus the respondent is liable for the Service Tax? (c) Whether in the facts and circumstances of the case whether the service 2. Issue in biodered by the respondent is a taxable activpply Recruitment Agency. Definition of the said term applicable at the relevant activity attracting Service Tax? 2. Issue in brief is whether the respondent is a Manpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required for the respondent from the group companies for deputation of the staff. He drew our attention to the amendment of such definition to contend that after the amendment, the definition was widened. 5. It is true that in the present form, the definition of Manpower Supply Recruitment Agency is wide and would cover within its sweep range of activities provided therein. However, in the present case, such definition would not cover the activity of the respondent as rightly held by the Tribunal. To recall, the respondent in order to reduce his cost of manufacturing, deputed some of its staff to its subsidiaries or group companies for stipulated work or limited period. All throughout the control and supervision remained with the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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