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2009 (12) TMI 152 - AT - Service TaxManpower recruitment or supply agency’s services- The assessee entered into a contract for rendering service of loading, unloading, stacking, destacking, bagging, weighing, standardization, etc. the revenue found that the assessee had supplied labourers and felt that the services rendered by the assessee would fall under the category of ‘manpower recruitment and supply agency’ and held that, the assessee was liable to pay service tax. Accordingly a Show cause notice was issued to the assessee. The assesese contended that contract was a work contract not for supply of labourers. The Adjudicating Authority hold that the staff supplied is the employees of the assesee, thus employer and amployee relation existed. Thus confirm the demand. Commissioner (Appeals) upheld the order. Held that- in the entire records, it was found that there was no whisper of supply manpower. The contracts and the invoice issued by the assessee showed that the entire essence of the contract was in execution of work as understood by the assessee and the recipient of the services. An identical view was taken by the Supreme Court in different cases. The said ratio also applicable in this case. The entire tenure of the agreement and the purchase order issued by the service recipient clearly indicated the execution of a lump sum work. The lump sum work would not fall under the category of ‘providing of service, or supply of manpower temporarily or otherwise, either directly or indirectly. Accordingly, the impugned order raising demand and imposing penalty was liable to be set aside, and appeal was to be allowed.
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