Whether employees sent on deputation to subsidiary/ associate companies amount to manpower recruitment or supply service before or after 1st July, 2012

Whether employees sent on deputation to subsidiary/ associate companies amount to manpower recruitment or supply service before or after 1^st July, 2012

Issue:-

Whether employees sent on deputation to subsidiary/ associate companies amount to manpower recruitment or supply service?

Facts of the Case:-

The appellants were sending their manager/ employees to hotels run by the subsidiary/ associate companies on deputation. They were recovering costs on actual basis and were not retaining any amount out of the payment made by the hotels run by the subsidiary/ associate companies.     The contention of the Department is that the appellants were engaged in manpower supply service as they were supplying their manpower to hotels run by associate companies on a cost recovery basis.

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