TMI Blog2019 (3) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... esponsible for the defect in executing the works. Appellant executes the works along with other workers and merely because he has engaged other workers in executing the work, it cannot be said that he is the supplier of man power. In clause 11 of the agreement, it is stated that the company will have privity of contract with the contractor only and will give instructions only to the appellant/contractor and has nothing to do with the conditions of employment of the workers who work with appellant. Reliance placed by the department in clause 14, in our view, is misconceived. It can be seen that while the workers are engaged to work within the manufacturing activity premises they have to abide by certain labour legislations. Merely taking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants have to be considered as man power supplier. 3. Show cause notices were issued to various appellants for various periods demanding service tax under the category of Man Power Recruitment or Supply Agency Service. After due process of law, the original authorities concerned confirmed demand, interest and penalties against the appellants. Appellants preferred appeal before the Commissioner (Appeals). The orders passed by the adjudicating authority were upheld by the Commissioner (Appeals). Hence these appeals. 4.1 On behalf of the appellants, Ld. Counsel Shri N. Viswanathan appeared and argued the matter. He furnished details of appeals, period involved, demand etc. as per the table furnished below : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he agreement in the appeal filed by Shri R.Athinarayanan as a sample agreement. It is argued that the said agreement clauses 1,2,3, 7, 11 and 12 would specifically show that this is an agreement entered into for doing works on behalf of TAFE which are in the nature of tyre fitting works etc. and are part of manufacturing activity. The appellants were doing job work on behalf of TAFE and were not engaged by TAFE for supply of man power. It is argued by him that the department has relied upon clause 14 of the agreement to contend that appellant is a labour contractor. Adverting to clause 7 of the agreement, Ld. Counsel submitted that it is evident that appellant was doing job works on behalf of TAFE and there is no employer-employee relations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an powers supplied the same would not fall under the category of Man Power Recruitment or Supply Agency Service. 5. On the other hand, Ld. A.R Shri S. Govindarajan supports the findings in the impugned order. He forcibly submitted that the contract is in the nature of a labour contract and the appellants are registered as a labour contractor and have also complied with labour legislations which go to show that they are supplying man power. He relies upon the decision of the Tribunal in the case of R.B. Yadav Vs CCE Raipur - 2017 (4) GST 16 (Tri.-Del.) to canvass strongly that ultimate use of the labour in the factory cannot be the criteria for deciding whether the contract is for supply of man power or not. 6. Heard both sides. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or. 12. The Company will not retain any control, supervision or the manner of the discharge, dismissal or retrenchment or re- employment of the workers engaged / employed by the Contractor. ... 14. The Contractor will obtain license under the Contract Labour (Regulation and Abolition) Act according to the number of workers engaged by him by depositing the fees and complying with the formalities. He will also seek the renewal of the contract at or before the expiry of the license. On perusal of the preamble of the agreement itself it is seen that appellant is an independent contractor appointed for executing work that are entrusted to him by TAFE. So also, at clause 3 as well as clause 7, it is stipulated that appellant shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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