2009 (12) TMI 155 - CESTAT, BANGALORE

Manpower recruitment agency- The appellants herein had entered into a contract with M/s. Aspin Wall & Co. for the purpose of rendering services of loading, standardization, unloading, stacking, weighing etc. On conclusion of the investigation and scrutiny of the documents and after recording the statements of various persons, the lower authorities felt that the services rendered by the appellant would fall under ‘manpower recruitment and supply agency’ and having not discharged the service tax liability, appellant is liable to pay service tax for the period from June, 2005 to September, 2006. Coming to such a conclusion, show-cause notice was issued to the appellant. Commissioner (Appeals) upheld the classification of the services rendered by the appellant under the category of ‘manpower recruitment and supply services’ and upheld the confirmed demand, interest with penalties. Held that- there is no agreement for utilization of services of an individual but a job/lump sum work given to the appellants for execution. The said clarification issued by the Board would be appropriate in the case where services of manpower recruitment & supply agency, had been temporarily taken by the Business or the industrial association for supplying of manpower and may not be for execution of a specific work. Thus, we are of the view that the impugned order is liable to be set aside and we do so. The appeal is allowed with consequential relief if any.