Case Law Details
Honeywell Technology Solutions Lab Pvt. Ltd. Vs Commissioner of Service Tax (CESTAT Bangalore)
The court observed that a similar issue arose before this Tribunal in the case of Volkswagen India (P.) Ltd. v. CCE, order dated 30-9-2013] upheld in 2016 (42) S.T.R. J145 (S.C) wherein this Tribunal held that the global employees working under the appellant are working as their employees and having an employee-employer relationship. It is further held that there is no supply of manpower service rendered to the appellant by the foreign/holding company. The method of disbursement of salary cannot determine the nature of the transaction.
The appeal against the order of the Tribunal was dismissed by Supreme Court on the ground of limitation.
Revenue had filed appeal against the order of this Tribunal which was dismissed by Hon‟ble Supreme Court on the ground of limitation.
We further take notice that ruling of Tribunal in M/s. Volkswagen India (Pvt.) Ltd. was followed by the Delhi Bench in Nissin Brake India Pvt. Ltd. V. Commissioner of Central Excise, Jaipur-I – 2019 (24) G.S.T.L. 563 (Tri.-Del.) upheld in 2019 (24) G.S.T.L. J171 (S.C) wherein under similar facts and circumstances, the issue was decided in favour of the appellant-assessee. Revenue preferred an appeal before the Hon‟ble Supreme Court against the order of Tribunal in Nissin Brake India Pvt. Ltd. and by order dated 22/02/2019, Hon‟ble Supreme court held that it finds no merit in the appeal and was accordingly pleased to dismiss the appeal. Thus, the principle of law laid down in the case of M/s. Volkswagen India (Pvt.) Ltd. (supra) and followed in Nissin Brake India Pvt. Ltd. have cristalized and attained finality. In this view of the matter, we allow the appeal and set aside the impugned order. Appellant is entitled for consequential benefit in accordance with law.
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