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2022 (9) TMI 901 - Service Tax
Classification of services - job work in the factory premises - engineering works as per drawings on the machines, tool provided by the contractors - Manpower Recruitment or Supply Agency Service or under job work service - responsibility of the appointed workers on the assigned work - HELD THAT:- It is found that in the present dispute whether the service is of Manpower Recruitment or Supply Agency Service or job work can be decided only on the basis of the agreement entered between service provider and service recipient. As per the agreement in the present case, the service recipient is having their factory and carried out various manufacturing activities. The present appellant was assigned job work related to manufacturing on the basis of charges which is per piece basis and the item being manufactured by the appellant. As per terms and conditions of the agreement, the service recipient will provide all the facilities such as machines, tools, place etc. - whenever there is work, the charges will be paid by the service recipient to the appellant as per the rates decided i.e. per piece basis.
Responsibility and control - HELD THAT:- The entire control of workers deputed by the appellant for the job work is with the appellant only and the service recipient has no obligation as regards the number of workers, man-hour etc. for the job assigned to the appellant. In these terms of contract, we are of the clear view that contract is for job work carried out by the appellant for the service recipient. Therefore, there is no activity of providing the service of Manpower Recruitment or Supply Agency Service.
In the case of MESSERS SUREEL ENTERPRISE PVT. LTD., M/S. SUREEL ENTERPRISE P. LTD. VERSUS C.C.E. & S. T- AHMEDABAD-III [2019 (10) TMI 1245 - CESTAT AHMEDABAD] wherein the similar facts are prevailing inasmuch as the service provider provided the manufacturing activity in the factory of service recipient with the help of his own workers and it was held that service is of not Manpower Recruitment or Supply Agency Service but it is job work.
The appellant have not provided service of Manpower Recruitment or Supply Agency Service, hence the demand does not sustain - Appeal allowed - decided in favor of appellant.