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2019 (3) TMI 1392 - AT - Service TaxClassification of services - Manpower Supply and Agency Services or not - supply of labourers to M/s. Madras Steel Industries Pvt. Ltd. - period from 16.06.2005 to Oct.’09 - Held that:- In the SCN it is alleged by Department that these processes do not amount to manufacture and that only if the process undertaken by the job worker amounts to manufacture would the activity fall under description of job work. This allegation of the department is without substance. There are several processes undertaken by job worker, which may not be in the nature of manufacturing activity. In the present case, the activities undertaken are heat treatment, gas cutting etc. From the invoices it is seen that job work charges are paid on the basis of nature of work carried out. The invoices show heat treatment charges, gas cutting charges etc. Thus, the payment is not based on man hours or as salary towards engagement of a person for doing work. The payment is made on piece rate basis depending upon the work done - The Tribunal in the case of M/s. Indira Industrial Labour Welfare Association [2018 (6) TMI 1363 - CESTAT CHENNAI] had analysed a similar issue and held that job work is done on piece rate, and the same cannot be considered as Man-power Recruitment or Supply Agency Services. Demand cannot sustain - appeal allowed - decided in favor of appellant.
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