In case of Samsung India Electronics (P.) Ltd. Vs. Commissioner of Central Excise and Service Tax, New Delhi (2015) 59 taxmann.com 444 (New Delhi-CESTAT) honorable Delhi CESTAT held that secondment/expatriation of staff does not amount to ‘manpower supply services'.

In the Instant case, assessee was an Indian subsidiary of Samsung, Korea. The Samsung, Korea provided expatriates to assessee, for which assessee paid certain amount to said foreign holding company. Department argued that it amounted to ‘manpower supply services' and was liable to tax under reverse charge in hands of assessee.

Honorable CESTAT observed that all throughout staff had been expatriated by foreign holding company, those staff remained 'employee' of assessee with control and supervision of assessee. Hence, secondment/expatriation of staff from foreign holding company to assessee would not amount to manpower supply services.