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2022 (5) TMI 909 - AT - Service TaxClassification of services - Man Power Recruitment or Supply Agency Service or not - contracts with various persons for supply of man power for utilizing such man power in their factory - period involved from April 2008 to March 2013 - penalty - HELD THAT:- The Tribunal in similar cases, wherein contactors had provided services to TAFE and income was received on piece rate, had observed that the contractors were liable to execute the work for TAFE and are responsible for the defect, if any. It was held that the activity would not fall within the definition of “Man Power Recruitment or Supply Agency Services” - In similar matters in G. RAMAKRISHNAN, K. BALAKRISHNAN, P. KANNUSAMY, M. ARULPRAKASAM, R. ATHINARAYANAN, S. SUBBURAYALU VERSUS CCE & ST MADURAI [2019 (3) TMI 42 - CESTAT CHENNAI] where the period involved is prior to June 2012, the Tribunal had set aside the demand relying upon the decision in the case of BHAGYASHREE ENTERPRISES, SONAWANE INDUSTRIAL VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-I [2017 (3) TMI 786 - CESTAT MUMBAI]. There is change of law with effect from 01.07.2012. It is submitted by the Ld. Counsel for appellants that appellants have obtained registration with the department and has started paying service tax. In similar matters for the period after June 2012, the Tribunal in K. BALAKRISHNAN AND N. RADHAKRISHNAN VERSUS COMMISSIONER OF GST & CENTRAL EXCISE, MADURAI [2021 (9) TMI 181 - CESTAT CHENNAI] has remanded the matter to the adjudicating authority for re-computation of the service tax after granting cum tax benefit. Penalty - HELD THAT:- The issue being purely interpretational and the appellants having taken registration after 2012, the penalty imposed is unwarranted - In the remand proceedings, the adjudicating authority shall look into as to whether the demand of service tax is legal and proper and also the correctness of the quantification. The appeals for the period prior to June 2012 are allowed - for the period after June 2012, the matter is remanded to the adjudicating authority and penalties imposed are set aside - appeal allowed in part and part matter on remand.
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