TMI Blog2024 (4) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... d. This clearly establishes that the services are for contract manufacturing of IMFL and not for manpower supply services as held in the impugned order. No adverse inference can be drawn for the reimbursement of expenses received by the appellant from the brand owner - there are no merit in the impugned order to demand Service tax on the manufacturing services provided by the Appellant under Manpower Recruitment and Supply service and accordingly, the demand under the same is liable to be set aside, as held. Renting of immovable property during the period 2008-2009 - HELD THAT:- During the relevant period, the issue was disputed before various High Courts and finally ended up before the Supreme Court. Finally, the issue was put to rest by way of a retrospective amendment. This, itself, shows that there was lot of confusion on levy of tax on renting of immovable property service during the material period involved in this case. The normal period of limitation for the raising demand for non-payment of service tax as per Section 73 of the Finance Act during the impugned period is one year from the relevant date. The demand in this case is for the period from 01.04.2008 to 31.03.2009 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eting Ltd.) for bottling of Indian Made Foreign Liquor ( IMFL ). 5. The case of the Revenue is that the manufacturing agreement mentions in clear terms in Clause 5 of the said agreement that Bagga will be exclusively responsible for all manpower, skilled and unskilled required for running the unit and bear all expenses in this regard ; and therefore, it is not a mere manufacturing / job-work agreement but an agreement of providing man-power supply for manufacture of IMFL for M/s. ADBPL. The demand of Service tax was on renting of immovable property for the period 2008-2009 was for letting out of the manufacturing facility of the Appellant to ABDPL. 6. Learned Advocate has taken us through the manufacturing agreements clause by clause and in particular to the following clauses: 3. a) Bagga shall in consultation with CML manufacture procure RS/ENA in accordance with standards and specifications set forth in the Annexure 5 and from suppliers approved by CML and in accordance with the standards and specifications setforth in Annexure B. Any change in such specifications/standards shall be in accordance with statutory requirements and/or mutually acceptable terms. The IMFL so manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Agreement. The Commissioner in the impugned order has, thus erred to construe the manufacturing agreement as an agreement for manpower supply agreement. By no stretch of imagination the activity of service under the manufacturing agreement can be classified as Manpower Recruitment or Supply Agency service falling under Section 65 (105)(k) of Chapter V of the Finance Act, 1994, as amended. 8. The Ld. Advocate further invited our attention to the definition of Manpower Recruitment or Supply Agency under Section 65(68) of the Finance Act, 1994 which reads as Manpower Recruitment Agency means any commercial concern engaged in providing any service, directly or indirectly, in any manner of recruitment of manpower, to a client; and submits that in terms of the said definition, the essential ingredients for a service, to qualify as manpower recruitment agency are: a) any commercial concern; b) engaged in providing service in any manner of recruitment of manpower; c) such recruitment service is provided to a client. 9. However, in the instant case, apart from being a commercial concern, none of the other conditions of manpower recruitment agency are satisfied in the instant case and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the appellant have been debiting the account of the said party towards reimbursement of expenses such as labour, power, fuel, water, repairs, maintenance and lease rent. Whereas the agreement for manufacture provides payment based on quantity manufactured/bottles on per case basis. Reimbursement arises in case where the manpower is employed on behalf of the other party for performing a job agreed upon. 12. On The issue of limitation submits that from the facts on record there is deliberate act on the part of appellant with the clear intent to evade payment of service tax which also cannot be attributed to entertaining of any doubt whether the services are taxable or not. The fact of rendering the services in question came to light of the Department only when the documents were called for verification. 13. Heard the parties. The demands in the instant case is two-fold, i.e., whether the appellant was providing manpower recruitment and supply agency services falling under Section 65 (105)(k) of Chapter V of the Finance Act, 1994, as amended and whether the appellant is liable to pay service tax on renting of immovable property for the period 2008-2009. A careful perusal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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