CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL BANGALORE REGIONAL BENCH - COURT NO. 1 Service Tax Appeal No. 25107 of 2013 (Arising out of Order-in-Appeal No. 497/2012 dated 03.10.2012 passed by the Commissioner of Central Excise (Appeals), Mangalore.)

M/s. Mangalore Refinery and Petrochemicals Limited Appellant(s)

Kuthethoor P.O, Via Katipalla, Mangalore – 575 030.

VERSUS The Commissioner of Central Excise Central Excise Headquarters Office, Respondent(s)

7^th Floor, Trade Centre, Bunts Hostel Road, Mangalore – 575 003.

WITH Service Tax Appeal No. 27010 of 2013 (Arising out of Order-in-Appeal No. 66/2013/MR dated 26.03.2013 passed by the Commissioner of Central Excise (Appeals), M angalore.)

M/s. Mangalore Refinery and Petrochemicals Limited Appellant(s)

Kuthethoor P.O, Via Katipalla, Mangalore – 575 030.

VERSUS The Commissioner of Central Excise Central Excise Headquarters Office, Respondent(s)

7^th Floor, Trade Centre, Bunts Hostel Road, Mangalore – 575 003.

APPEARANCE:

Shri Yovini Rajesh Rohra and Shri Tashi Cahubey, Advocates for the Appellant.

Shri Sanjay Venkat, Superintendent (AR) for the Respondent.

CORAM:

HON'BLE MR. P. A. AUGUSTIAN, MEMBER (JUDICIAL)

HON'BLE MRS. R. BHAGYA DEVI, MEMBER (TECHNICAL)

FINAL ORDER NO. 20884 - 20885 / 2025 DATE OF HEARING: 23.06.2025 DATE OF DECISION: 23.06.2025 PER: P. A. AUGUSTIAN The issue in the present appeals is regarding service tax demand on ‘Manpower Recruitment or Supply Agency Service’. Appellant is holder of service tax registration under the categories of Storage and Warehousing, Transport of goods by Road, Renting of Immovable Property, etc., During audit, it was noticed that appellant was deputing their employees to other refineries and collecting deputation charges. Considering such deputation charges as falling under the category of ‘Manpower Recruitment or Supply Agency Service’, proceedings were initiated and adjudication authority as per Order-in-Original No.19/2011-ST ADC dated 09.11.2011 confirmed the demand for the period from 1.4.2009 to 31.3.2010. Aggrieved by said order, an appeal was filed before Commissioner (A) and the Commissioner (A) as per the Order-in-Appeal No.497/2012 dated 03.10.2012 upheld the order of adjudicating authority. Aggrieved by said order, appeal No.ST/25107/2013 is filed. Similarly for the subsequent period from 01.04.2010 to 31.03.2011, adjudicating authority confirmed the demand vide Order-in-Original No.40/2012-ST ADC dated 16.10.2012 and in appeal, appellate authority also confirmed the demand.

Aggrieved by said order, appeal No.ST/27010/2013 is filed.

2. When the appeal came up for hearing, the learned counsel for the appeal drew our attention to the Order-in-Original No.01/2011-ST ADC dated 05.01.2011 where the adjudicating authority itself dropped the proceedings against the appellant for the previous period i.e., 1.12.2007 to 31.03.2009 and submitted that once the adjudicating authority has dropped the demand for the previous period and when the department had accepted the same, the confirmation of the demand on the very same classification is prima facie unsustainable. Learned counsel also submitted that the issue regarding service tax liability is settled by the decision of the Tribunal in the matter of Indian Oil Corporation Ltd. vs. CCE & ST, Lucknow vide Final Order No. 70967/2019 dated 16.5.2019 – CESTAT, Ahmedabad where the Tribunal had categorically held that deploying of staff to subsidiaries/group companies cannot be held that appellants were providing any ‘Manpower Recruitment or Supply Agency Service’.

3. The learned Authorized Representative (AR) for the Revenue reiterating the findings in the impugned order, submitted that the issue regarding service tax liability on such deputation of employee is considered by the Hon’ble Supreme Court in case of CCE & ST, Bangalore vs. Northern Operating Systems Pvt. Ltd.: 2022 (61) GSTL 129 (SC) where it is held that secondment of employees by overseas entity for the purpose of completion of assessee’