Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 762 - AT - Service TaxClassification of service - Manpower Recruitment or Supply Agency service - the appellant as per the contract with M/s. Kalyani Lemmerz Ltd., providing the job of producing or processing in the premise of Kalyani. The terms of the job is on per piece basis - whether the service provided by the appellant to Kalyani is of Manpower Recruitment or Supply Agency service or otherwise? - Held that: - though the department has proposed the service of the appellant as classifiable under Manpower Recruitment or Supply Agency service but no evidence was adduced to conclusively hold that the service is of Manpower Recruitment or Supply Agency service. The figure of the service tax was retrieved from the bank account which does not show what is the basis of the service charge by the appellant to the service recipient. Therefore, we do not find any material evidence in the show-cause notice to hold that the appellant are providing Manpower Recruitment or Supply Agency service. From the reading of the agreement and Annexure A it can be seen that the service is the production ancillary associates and rates for the service is on per piece rate of the pieces produced. Therefore the appellant's job is not to depute the labour to the service recipient, irrespective of the number of labours, the respondent has to perform the job of producing piece for the service recipient and the rate is on per piece basis. Therefore, the wages/ salary or emolument paid to the labour is not relevant to the service recipient. That is the responsibility of the appellant. Against this evidence the department right from show-cause notice up to the Commissioner (Appeals) could not bring any material to show that there is arrangement between the appellants and service recipient there is arrangement of supply of manpower. Since the department could not establish that the service provided by the appellant are of supply of manpower, the demand on the said service is not sustainable - appeal allowed - decided in favor of appellant.
|