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2021 (9) TMI 416 - AT - Service TaxScope of taxability - Manpower recruitment or supply agency service - remuneration offered in work-orders were on ‘piece rate’ - exemption initially taken registration as provider of ‘business auxiliary service’ which, however, was surrendered upon coverage by the exclusion in N/N. 8/2005-ST dated 1st March 2005 - HELD THAT:- Two aspects are starkly prominent insofar as the present dispute is concerned: the recipient of the service had been discharging a portion of the tax liability that devolved on them in accordance with the specific prescription for ‘manpower recruitment or supply agency service’ after 1st July 2012 and it has been held by the Tribunal in several decisions, that coverage under ‘manpower recruitment or supply agency service’ for tax may be determined by the manner in which consideration is packaged. The Contract Labour (Regulation and Abolition) Act, 1970, intended for the specific purpose of ensuring proper working conditions of those not in regular employment, does not, in the light of the specific definitions in Finance Act, 1994, provide adequate support to fasten tax liability. That is not relevant to the dispute and may be ignored. It is seen from the findings of the adjudicating authority that the claim of the appellant of having engaged in contract on ‘piece rate basis’, though undeniable in some of the ‘work orders’, has been disregarded in the impugned order. Having identified some of the ‘work orders’ to contain compensation on ‘man day’ basis, it was incumbent upon the adjudicating authority, in the light of such finding, to segregate those to which, in accordance with the precedent arising from decisions of the Tribunal, coverage under that taxable service would not extend. This, the adjudicating authority has failed to do. The tax liability of the appellant for the period after 1st July 2012 also needs ascertainment by segregation of the work-orders on which tax liability may arise and re-examining those in the light of statutory provision and judicial precedent - the dispute remnaded back to the original authority for a fresh decision - appeal allowed by way of remand.
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