Skill Development not Manpower Supply Service

Case

ILFS Clusters Development Initiative Ltd v/s CCE and ST Noida  2014 (9) TMI 880 - CESTAT NEW DELHI

Facts

Service tax was demanded on the amount received by the appellant for the implementation of the development programme aimed at training rural BPL youths in areas of textile, leather and pharma industries under the Swarnjayanti Gram Swarojgar yogna of the Ministry of Rural Development. The appellants contended that the service provided by them does not fall under manpower supply service.

Held

The tribunal held that it is evident that the specific project for skill development for rural youth was designed to equip the unemployed rural youth from BPL category with employable skills, which would enable them to either secure a job/placement in the industry or pursue sustainable self employment opportunities. Its objective is to ensure time bound training and capacity building.

Thus the aim of the said skill development programme is training, skill development and capacity building to the rural poor to enhance their employment or capacity for self-employment. Looking to the definition of Manpower Supply Service appellant cannot fall thereunder and consequently they cannot be held to provide the manpower recruitment and supply services. Stay granted.

Hope the information will assist you in professional endeavors.

CA Akash Phophalia

Chartered Accountant

(BCOM (HONS), MCOM (FandT), CS, DISA, Certified Indirect Taxation of ICAI)

Office No 203, Amrit Kalash,

Residency Road, Near Bombay Motor Circle

Jodhpur – 342001

Rajasthan

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The contents are for informational purpose and no where constitutes professional advice or recommendation.