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TMI Blog2019 (7) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... tiles and Industries Ltd.("CPP" in short) mainly in the nature of handling of wood and maintaining cleanliness in specific parts of the factory, maintenance of Hydra Pick and carry crane, etc. Such jobs were executed by deploying labour by the appellant, for which they raised periodical invoices based on the quantum of work handled and not based on the number of workers or labourers involved in the particular work. The appellant was advised that no service tax is leviable on such works and accordingly, they neither took registration under the provisions of Service Tax nor they charged service tax in their bills. The principal - CPP issued a letter to the appellant in December, 2009 stating that on the nature of work being done by them for C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h M/s.Century Pulp and Papers, Lalkuan of Distt. Nainital, it has been revealed that the most of the services provided do not appear to be covered in any of the taxable services except the work of yard cleaning which is covered under Cleaning Service and the work of Maintenance of hydraulic crane which is covered under the Management. Maintenance and Repair Services but the aggregate value of the same has been found too below the exemption limit of the small service provider to attract service tax liability under the provisions of the Notification No.06/2005-ST dated 01.03.2005 as amended. " 3. Subsequently,, the appellant received summons from the Superintendent (Preventive) requiring the appellant to produce documents/information for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h also supports the allegation that the appellant supplied manpower. The agreements entered between the parties were not genuine and appeared to be colourable device to avoid tax. Further, Mr. Jitendra Kumar Sahani created a new concern and got himself registered with the Department under the category of "Service of Manpower Supply Agency" for the very same jobs as were being done in the past. From the attendance register (RUD-15), copy of which was recovered from CPP, it appeared that the appellant was maintaining a register wherein the name of the workers and the respective work place/section was shown. 4. The show cause notice was adjudicated on contest and vide impugned order-in-original dated 27.11.2013, the proposed demand of Rs. 72, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xecuted and not based on the number of workman deployed or allegedly supplied. The Adjudicating Authority has misconstrued the contract between the parties and has heavily relied on the payment of ESI and PF by the principal-CPP, in respect of workmen deployed by the appellant. Under the relevant Labour Laws being the Employees Provident Fund Act, 1952 read with the Scheme and the Employees State Insurance Act, 1948, the liability for workers employed in a factory towards payment of P.F. and ESI contribution is on the principal employer ultimately. The principal-employer is the owner or occupier of the factory. Thus the principal-CPP has discharged their obligation under the provisions of ESI Act and EPF Act. The same does not lead to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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