TMI Blog2011 (11) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... manpower for conversion of raw materials to finished products and in view of the fact that plant & machinery, space and all other facilities are provided by the principal, the activity undertaken by the appellant is nothing but supply of manpower - it can be seen that there are two requirements for determining whether a service is taxable service under the category of manpower recruitment or supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or granules to jars/pet bottles depending upon the requirement of NKPL. According to the agreement between NKPL and the agreement, the appellant was to pay specific amounts determined on the basis of number of containers/jars/pet bottles produced by the appellant. Proceedings were initiated against the appellant on the ground that the activity undertaken by the appellant amounts to providing man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or manpower recruitment agency. Therefore he submits that the activity undertaken by the appellant is not liable to service tax at all. The learned A.R. submits that the appellant was supplying manpower for conversion of raw materials to finished products and in view of the fact that plant machinery, space and all other facilities are provided by the principal, the activity undertaken by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otherwise to any other person. 4. From the above it can be seen that there are two requirements for determining whether a service is taxable service under the category of manpower recruitment or supply agency. First of all, it should be provided by a manpower recruitment or supply agency and secondly it should be in relation to manpower supply or recruitment. In this case, whether it is in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng investigation. Commissioner (Appeals) in her order simply stated that she agreed with the view of the adjudicating authority and went on to say that appellants had wilfully suppressed the fact of service and appellants failed to pay service tax. Both the authorities have not at all discussed how the service provided by the appellant amounts to service of manpower recruitment or supply. After co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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