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2019 (8) TMI 1028 - AT - Service TaxManpower Recruitment or Supply Agency Service or BAS service - nature of contract - services relating to supply of manpower for packing of goods at M/s. L & T, Mysore - taxable service or not - HELD THAT:- A bare perusal of the terms and contracts of the agreement shows that the contract which the appellant and M/s. L & T have is one for packing of the meters manufactured by M/s. L & T in the premises of M/s. L & T. They do not have any contract for supply of any number of persons. In fact, M/s. L & T is not concerned as to how many people they employ. The appellants get paid if they pack the meters as per the specifications on per piece basis - We do not find anything in the scope of the contract which can remotely suggest that it is a contract for supply of manpower to M/s. L & T. There is a force in the argument of the learned counsel for the appellant that packing is a process incidental or ancillary to the manufacture and therefore should be considered as part of manufacture as per Section 2(f) of the Central Excise Act. Packing of goods per se may not be manufacture in itself but when it is done along with the manufacture in the factory of the manufacturer, packing is included in the process of manufacture. On the entire value of the goods including the cost of packing, M/s. L & T is paying Central Excise duty. The demand on the appellant under the head of 'Manpower Recruitment or Supply Agency Service' cannot survive by any stretch of imagination - Appeal allowed - decided in favor of appellant.
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