TMI Blog2018 (2) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... own labour for packing activities. Viewed in this light, we are not able to appreciate how tax can be levied on the assessee for utilizing his own labour - tax liability do not sustain. Appeal dismissed - decided against Revenue. - ST/517/2009 & ST/521/2009 - 42235-42236/2017 - Dated:- 19-9-2017 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri R. Janardhanan Pillai, Consultant, For the Assessee Shri S. Govindarajan, AC (AR), For the Revenue ORDER Per: Bench Issues in both these appeals since emanating out of the same impugned order, they are taken up together for common disposal. 2. The disputed issues involved in the matter relate to demand of tax liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue in respect of BAS in great detail, relied upon the ratio of Apex Court s judgment in the case of United Repackaging Vs CCE Calcutta - 2000 (121) ELT 658 (Tri.-Cal), found that the activity carried out by assessee amounts to manufacture and therefore the assessees are not liable to service tax. However, the adjudicating authority has imposed undue penalty which has been upheld by the Commissioner (Appeals). 3.2 In respect of demand on Man Power Recruitment Agency service (ST/521/2009), ld. Consultant submits that they had only provided labour for packing and according to him, this activity cannot be brought under the fold of Man Power Recruitment Agency Service . He also submits that even otherwise, the demand of tax liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, however there is no clarity given therein with regard to terms of supply. From the assertions of the ld. Consultant it emerges that the assessee has been utilizing his own labour for packing activities. Viewed in this light, we are not able to appreciate how tax can be levied on the assessee for utilizing his own labour. Tax liability in this respect cannot therefore be sustained and will require to be set aside, which we hereby do. In consequence, penalty imposed on the assessee also stands set aside. Assessee Appeal ST/521/2009 succeds. 7. In the event, department s Appeal No.ST/517/2009 is dismissed. Assessee s Appeal No.ST/521/2009 is allowed with consequential relief, if any, as per law. Cross objection filed by assessee also st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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