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2019 (3) TMI 42 - AT - Service TaxClassification of services - Man Power Recruitment or Supply Agency Service or not - works related to manufacture of tractors within the manufacturing vicinity of M/s. Tractors and Farm Equipments Ltd. - According to the department, the appellants not being independent contractor and worked under the supervision of M/s. TAFE they are to be considered as man power supply agent - Held that:- The appellant is an independent contractor appointed for executing work that are entrusted to him by TAFE. So also, at clause 3 as well as clause 7, it is stipulated that appellant shall be responsible for the defect in executing the works. Appellant executes the works along with other workers and merely because he has engaged other workers in executing the work, it cannot be said that he is the supplier of man power. In clause 11 of the agreement, it is stated that the company will have privity of contract with the contractor only and will give instructions only to the appellant/contractor and has nothing to do with the conditions of employment of the workers who work with appellant. Reliance placed by the department in clause 14, in our view, is misconceived. It can be seen that while the workers are engaged to work within the manufacturing activity premises they have to abide by certain labour legislations. Merely taking such licence or abiding by such labour law, it cannot be said that the contract for executing works within the manufacturing activity would be supply of man power. The conclusions that have been arrived by lower authorities can at best be termed as presumptive without any evidential or legal basis - appeal allowed - decided in favor of appellant.
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