Service tax cannot be demanded on amounts incurred by HO towards salaries of Branch employees

Cades Digitech Pvt Ltd Vs Commissioner of Central Tax (CESTAT Bangalore)

We find that the amounts incurred by the head office (HO) towards the salaries etc. of the employees working in their branches can by no stretch of imagination be equated to any service rendered to them by the respective branches. We find that in the case of Kusum Healthcare Pvt. Ltd. (supra), it was held that the legal fiction created in proviso to Section 66A for consideration of branch as a separate establishment is certainly not for the pur

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