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2014 (12) TMI 1420 - AT - Service TaxNon-payment of service tax - appellants had supplied labour but did not pay service tax under manpower recruitment or supply agency service - Extended period of limitation - HELD THAT:- As per the agreement the appellants were being paid for operating the mill @ Rs. 160/- PMT of the quantity of gods produced, It is thus evident that the payment was based on production as a result of operation of the mull. Under Section 65(68) of the Finance Act, 1994 manpower recruitment or supply agency means “any person engaged in providing any service directly or Indirectly in any manner tor recruitment or supply of manpower temporary or otherwise, in any manner” It is evident that the activity rendered by the appellants does not fall in the said definition inasmuch as they did not supply any manpower to any other person and merely engaged the manpower themselves to operate the mill and. got paid on the basis of production on per metric ton basis It also comes out that the activity done by them amounted to manufacture. Extended period of limitation - extended period has been invoked on the ground that the appellants had never disclosed these facts and non-payment of service tax which came to notice of the department only at the time of audit and thus the appellants had intentionally not paid service tax with indent to evade the same - HELD THAT:- It is thus evident that mere son-payment of ‘service tax has been ipso fact equated with the Intention to evade which, as is too well settled to need citing of precedent, is legally unsustainable. In the case of the Rameshchandra C. Patel CST, Ahmedabad [2011 (11) TMI 415 - CESTAT, AHMEDABAD] it was held that the Agreement between parties talking about products to be manufactured sad payments to be made. and silent about number of men or labour to be used or manner in which they have to be used or quantum of payment to be made to them would not be covered under manpower recruitment or supply agency service. The requirement of pre-deposit is waived - appeal allowed.
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