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2014 (8) TMI 449 - CESTAT BANGALOREManpower recruitment or supply service - The plant and machinery owned by PTL, the present appellant, was taken on lease by ATL but PTL with their employees were undertaking the actual manufacturing operations of the tyres and tubes meant for ATL - Revenue contends that employees of appellant were utilized for manufacture of tyres for ATL, the payments received towards salary and other dues of the employees should be treated as payments towards ‘manpower recruitment or supply service’ - Held that:- The agreement for joint operation enabled ATL to manufacture of tyres of ‘Apollo’ brand in the plant and machinery owned by the appellant and the same was in pursuance of the scheme approved by the BIFR. The ATL is clearly manufacturer of excisable goods and, undisputedly, duty is being paid by them. On a close perusal of the agreement, we do not agree with the submission that the same should be treated only as an agreement for supply of manpower. Even otherwise, we, prima facie, agree with the views expressed by the learned senior advocate that whatever service tax to be paid on the alleged “manpower recruitment or supply service” was available as credit to ATL in respect of the goods manufactured in the same premises and, therefore, it is a clear case of revenue neutrality - Stay granted.
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