The assessee entered into agreements with various software companies for undertaking various software related services such as design and development of software as per the task order assigned or the projects allotted by the clients of these software companies from time to time.
For this purpose, it sent its employees either to such software companies premises or to the premises of the ultimate clients as per the requirements, where the actual project was being undertaken.
The Adjudicating Authority held that the assessee was not engaged in development of any software on its own, but it was only providing employees to software companies. Therefore, the activities undertaken by the assessee would fall under the category of ‘Manpower recruitment or Supply agency services’. The assessee filed an appeal in the Tribunal.
The Tribunal held that the assessee was only providing manpower having software technology skills, to the organizations. The software or IT development was done by utilizing this manpower. Therefore, the activities undertaken by assessee would fall under the category of ‘Manpower recruitment or supply agency services’
Citation:  93 taxmann.com 276 (Chennai – CESTAT)