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2013 (8) TMI 58 - AT - Service TaxManpower Recruitment or Supply Agency Service or Business Auxiliary Services – demand of duty - Penalty u/s 77 and 78 – department contended that the assessee was providing harvesting sugar cane and transporting the harvested sugar cane from the farmers' fields to the factory site and the same was classifiable as ‘manpower recruitment or supply agency service' and is chargeable to service tax and penalty u/s 77 & 78 - Held that:- The activity undertaken by the assessee was one of procuring or processing of the goods belonging to the client which was classifiable under ‘Business Auxiliary Service' and not under ‘Manpower Recruitment of Supply Agency Service. - The work undertaken is harvesting of sugar cane and transporting the same to the sugar factory for which labour is employed. The sugar cane belongs to the sugar factory in terms of the agreement of sale executed between the farmers and the sugar factory. Therefore, the activity undertaken by the appellant is one of procuring or processing of the goods belonging to the client which is classifiable under ‘Business Auxiliary Service' and not under ‘Manpower Recruitment of Supply Agency Service. - Decided in favor of assessee.
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