TMI Blog2017 (4) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... he lessor and the lessee and we do not find any clause that specifies period of employment of these workers with the lessee - nature of the transaction between the respondent and the lessee and its failure to conform to the description of the taxable service takes the service out of ambit of taxable service - appeal dismissed - decided against Revenue. - ST/115/2009 - A/86407/17/STB - Dated:- 17-3-2017 - Shri M V Ravindran, Member (Judicial) And Shri C J Mathew, Member (Technical) Shri M P Damle, Assistant Commissioner (AR) for the appellant Shri D R Gadekar, Consultant for the respondent Per: C J Mathew: The short point for determination in this appeal is the taxability of payments received by lessor on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r levying the tax as the factory had been handed over only on lease and that it was not a sale which involved operation being handled by employees of the lessor. Further, it was held that no amount was retained as consideration for service even if were to be presumed that the service had been rendered. The attempt to fasten the same activity as banking and financial services for the period from September 2005 to July 2006 and the decision thereon by Commissioner of Central Excise (Appeals), Pune was also noted in the impugned order to hold that the approach is one of vexatious and arbitrary demand of tax. 4. Revenue, on review, challenges the impugned order, primarily, on two grounds: that the definition of the taxable service in secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmercial concerns for temporary supply of manpower which is engaged for a specified period or for completion of particular projects or tasks. Services rendered by commercial concerns for supply of such manpower to clients would be covered within the purview of service tax. 22.3 In these cases, the individuals are generally contractually employed by the manpower supplier. The supplier agrees for use of the services of an individual employed by him to another person for a consideration. The terms of the individual s employment may be laid down in a formal contract or letter of appointment or on a less formal basis. What is relevant is that the staff are not contractually employed by the recipient but come under his direction. 22.4 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lessee. That these 108 employees are placed at the disposal of the lessee is the sole fact reflected in the agreement. That it is the agreement which has a fixed tenure and also attaches to the workers so transferred detracts from the scope of coverage of the clarification dated 27 th July 2005 which specifies that such employment is for a specified period. It is further seen that of the entire amount received by the respondent for disbursement to the workers, a portion has been withheld, not as consideration for any service, but in accordance with the directions of the financing agency which has made such retention a condition for the wage package with the retained amount payable upon finalisation of the wage agreement. Hence, the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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