Service Tax was not applicable on salary paid to employees under secondment agreement

M/s. Northern Operating Systems Pvt Ltd Vs C.C.,C.E.& S.T- Bangalore (adjudication) (CESTAT Bangalore)

Conclusion: No  service tax applicable to salary paid to employees under the secondment agreement as persons seconded to assessee working in the capacity of employees and payment of salaries etc was made to such employees by group companies only for disbursement purposes and hence employee-employer relationship exist and the whole arrangement between assessee and its group companies did not fall under the taxable service of manpow

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