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2015 (8) TMI 957 - CESTAT MUMBAI

2015 (8) TMI 957 - CESTAT MUMBAI - TMI - Manpower recruitment and supply services - services rendered by the appellant of making arrangements for activities of harvesting of sugarcane, loading and unloading and transportation of sugarcane in and for various sugar factories - Revenue alleges that appellant receives the payment from sugar factories and retains a part of the amount while paying the sub-contractors and also charges the sugar factory an amount of Management fee - Held that:- involved .....

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nable and liable to be set aside - Decided in favour of assessee. - Appeal No. ST/645/10-Mum - Dated:- 2-7-2015 - M V Ravindran, Member (J) And P S Pruthi, Member (T),JJ. For the Appellant : None For the Respondent : Shri A B Kulgod, AC (AR) ORDER Per: M V Ravindran: This appeal is directed against order in original No. 3/ST/2010 dated 24.02.2010 and is filed by the appellant assessee. When the matter was called out none appeared on behalf of the appellant nor there is any request for adjournmen .....

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unloading and transportation of sugarcane in and for various sugar factories. It is the allegation in the show cause notice that the appellant herein on receiving payment from sugar factories retains a part of the amount while paying the sub-contractors and also charges the sugar factory an amount of Management fee, accordingly the show cause notice raised demand under the category of manpower recruitment and supply services for the period 2005-06 to 2007-08. The appellant contested the demands .....

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t case decision went in favour of the assessee, revenue preferred an appeal to the Honourable High Court of Bombay and their Lordships by judgement dated 27 January - 2015 - dismissed the appeal of the revenue. We respectfully reproduce the entire judgement. "1. This appeal challenges the judgment and order passed by the Customs Excise & Service Tax Appellate Tribunal, Mumbai, holding that the service in question was not taxable on the date when tax was demanded. The facts are very simp .....

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on tonnage basis. This work, on the face of it, clearly involves manpower. The respondent, admittedly, engaged number of labour for harvesting the sugarcane , loading it in vehicle and unloading it at factory site. During the course of work, the respondent on one hand and the sugar factory on the other, exchanged number of documents which showed that the sugar factory specifically paid certain amounts towards labour charges, harvesting charges and transportation charges etc. At some point of tim .....

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es would fall within the definition of Manpower Recruitment or Supply Agency Services. The definition of this term is mentioned in Clause 105(k) of Section 65 of Finance Act. It reads as under: "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" 3. The term "Manpower Recruitment or Supply Agency" .....

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ent's work, though provided service to the sugar factory, did not come within the mischief of the term "Manpower Recruitment or Supply Agency". 5. The learned counsel for the appellant tried quite hard to convince this Court that looking to the nature of work undertaken by the respondent, it would come within the definition of manpower recruitment. She placed reliance on the words "supply of manpower" used in the definition of Manpower Recruitment or Supply Agency, quoted .....

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upplied to their factory site. In what manner the work is done was known to the sugar factory but was not their concern really. The sugar factory was aware that this work is done with the help of number of labours , whose services are procured by the respondent either individually or through some other agencies but how was such work done was not the concern of the sugar factory. Harvesting sugarcane, at-least today, is a labour intensive activity. Very soon, this work would be done mechanically. .....

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ds as under :- "8. There cannot be any doubt whatsoever that a document has to be read as a whole. The purport and object with which the parties thereto entered into a contract ought to be ascertained only from the terms and conditions thereof. Neither the nomenclature of the document nor any particular activity undertaken by the parties to the contract would be decisive." 7. In any case, the agreement itself is eloquent enough to draw the above conclusion. In this background, we must .....

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