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2015 (3) TMI 43 - AT - Service TaxClassification of service - manpower recruitment or supply agency service - activity of providing harvesting sugar cane and transporting the harvested sugar cane from the farmers' fields to the factory site - Held that:- As per the provisions of Section 65(68)'Manpower Recruitment or Supply Agency service' means any person providing any service, directly or indirectly, in any manner, for the recruitment or supply of manpower, temporarily or otherwise to any person' and as per Section 65(105)(k)'taxable service' means'any service provided or to be provided to any person, by a manpower recruitment or supply agency in relation to the recruitment or supply of manpower, temporarily or otherwise, in any manner'. Service brought under the tax net under the'Manpower Recruitment or Supply Agency Service' envisages supply of labour per se. In the instant case, we notice that there is no supply of labour per se to the sugar factory. The work undertaken is harvesting of sugar cane and transporting the same to the sugar factory for which labour is employed. The sugar cane belongs to the sugar factory in terms of the agreement of sale executed between the farmer and the sugar factory. Therefore, the activity undertaken by the appellant is one of procuring or processing of the goods belonging to the client which is classifiable under 'Business Auxiliary Service' and not under 'Manpower Recruitment of Supply Agency Service'. On the supervision charges paid to the appellant for the said activity, they have already discharged service tax liability under 'Business Auxiliary service'. - No merit in the impugned order classifying the service under the category of 'Manpower Recruitment or Supply Agency service'. Accordingly we set aside the impugned order - Decided in favour of assessee.
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