TMI Blog2018 (9) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... the labourers and the labourers have got every right to deny to cut for a particular sugarcane grower. The mill simply manufactures the sugar with regard to the availability of the cutting labourers only. Being a Government undertaking, it can be seen that all appointments are to be made in the muster roll of the sugar mill - it cannot be said that the appellants have provided harvesting labourers to the sugarcane growers for harvesting the sugarcane. Tribunal on identical set of facts had considered the issue and held that the sugarcane growers themselves are encouraging the harvesting labourers and as a mere facilitation, the amount to be paid to these harvesters are deducted from the price of the sugarcane that is to be paid to the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of harvesting, labourers (manpower) will be arranged by the appellant factory and the cane cutting charges will be recovered by the appellant from the cost of the sugarcane. It appeared to the department that the appellants were thus providing manpower recruitment and supply service for engaging labourers for harvesting sugarcane. Show cause notices were issued proposing to demand service tax along with interest and for imposing penalty under the category of manpower recruitment or supply agency service. After due process of law, the adjudicating authority confirmed the demand of ₹ 3,54,57,555/- for the period from November 2005 to September 2010 and ₹ 56,37,264/- for the period from October 2010 to March 2011 along with int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly during specified period. To ensure consistent supply of sugarcane during the specified period, the farmers are encouraged to cultivate and they are also provided necessary facilities. One of the said facility is to get the farmers registered themselves with the appellant s factory / sugar mill. Though it has become duty bound to supply the sugarcane at the doorsteps of the appellant-factory and appellant agrees to pay the price for such supply as per the price fixed by the Government of Tamilnadu, it is to ensure that there is consistent supply of sugarcane at the time of seasonal period. On receipt of the sugarcane in the factory, the total quantity supplied by such grower would be quantified and the price is paid to them after deductin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the subsequent period for the same assessee, Commissioner (Appeals) had dropped the demand on similar set of facts. 4. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. 5. Heard both sides. 6. The demand has been made on manpower supply service alleging that the appellant have supplied manpower to the sugarcane farmers for sugarcane harvesting. The contention of the department that the charges towards supply of cane harvesting labourers are recovered from the farmers at the rate accepted by the farmers and therefore the said activity would be covered within the definition of manpower recruitment or supply agency service under Section 65(68) of the Finance Act, 1994. The appellant has replied to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
