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2023 (11) TMI 372 - AT - Service TaxClassification of services - Manpower Recruitment or Supply Agency Service or not - contract for performance of specific task such as transportation, management, operation and maintenance of calcinations plant - HELD THAT:- It can be seen from the work order and the terms, on the basis of which the appellant have rendered the services to M/s. GMDC. The activity covers crushing, screening, calcinations plant operation and proper stacking of calcined bauxite etc. The appellant was required to manufacture/ produce certain quantities of calcinated bauxite as mentioned in the work order - The perusal of the work order and the definitions, it is apparent that for Manpower Recruitment or Supply Agency Service is to supply of manpower temporarily or otherwise to another person, it is necessary that the service provider will only recruit and supply the manpower to the service recipient and the person so providers will be working under the superintendence and control of the service recipient. Thus it is to emphasize that for the activity to be included in the Manpower Recruitment or Supply Agency Service then the control over the manpower should be with the recipient of the service. The service rendered by the appellant to M/s. GMDC does not fall under the category of Manpower Recruitment and Supply Agency Service - there are no merit in the order in original in this regard. Demand of service tax under Business Auxiliary Service - HELD THAT:- The facts of the matter are that the appellant have been undertaking work of calcination of raw bauxite into calcined bauxite at their own factory premises. The M/s. Saurashtra Calcined Bauxite and Allied Industries Ltd. (SCABAL) will bring raw bauxite to the appellant's factory premises and the appellant using this in their factory/plant with his own manpower, converted the raw bauxite into calcined bauxite. For the said process of calcination of bauxite, the appellant was paid by M/s. SCABAL at a fixed section per Metric Ton basis - conversion of raw bauxite into calcinated bauxite resulted into emergence of a new substance classifiable under a separate tariff heading and therefore, such activity amounts to manufacturing activity. Since the activity amenity to manufacturing beyond the scope of levy of service tax. Further, as stated in the preceding paras that service recipient has been discharging central excise duty liability on the calcinated bauxite received from the service provider i.e. the appellant, therefore, service provided by the appellant does not fall under the provisions of Business Auxiliary Service. The service provided by the appellant does not fall under the category of Business Auxiliary Service - there are no merit on this count also for demanding service tax - appeal allowed.
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