Relief for India Project Offices: CESTAT’s makes first distinction from SC secondment ruling

By Vikash Agarwal

In an important decision, Hon’ble CESTAT Delhi has held that the Supreme Court’s judgment on 𝐬𝐞𝐜𝐨𝐧𝐝𝐦𝐞𝐧𝐭 𝐨𝐟 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐞𝐬 𝐝𝐨𝐞𝐬 𝐧𝐨𝐭 𝐚𝐩𝐩𝐥𝐲 where secondees are deputed by a 𝐅𝐨𝐫𝐞𝐢𝐠𝐧 𝐇𝐞𝐚𝐝 𝐎𝐟𝐟𝐢𝐜𝐞 𝐭𝐨 𝐢𝐭𝐬 𝐈𝐧𝐝𝐢𝐚𝐧 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐎𝐟𝐟𝐢𝐜𝐞.

The Tribunal observed that a 𝐏𝐎 𝐢𝐬 𝐧𝐨𝐭 𝐚 𝐬𝐞𝐩𝐚𝐫𝐚𝐭𝐞 𝐥𝐞𝐠𝐚𝐥 𝐞𝐧𝐭𝐢𝐭𝐲 𝐟𝐫𝐨𝐦 𝐢𝐭𝐬 𝐇𝐎. Sending staff from HO to PO is therefore “service to self”, not manpower supply.

Following the SC’s ruling, the DGGI had initiated investigations on expat secondments, including those involving Project Offices.

This decision gives clear judicial support to Project Offices, confirming that such arrangements are not taxable as manpower supply and providing an important reference point in ongoing investigations and disputes on expat secondments.