Tribunal rules lump sum payment for work not labor supplied; orders set aside, appeals allowed

The Tribunal found the demand under the Manpower Recruitment Service category unsustainable as the remuneration was for lump sum work, not labor supplied. Consequently, the impugned orders were set aside, and the appeals were allowed with consequential relief.

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Issues:
Appeal against service tax demand under Manpower Recruitment Service category.

Analysis:
The appellants contested service tax demands under the Manpower Recruitment Service category. The Tribunal disposed of both appeals together due to common issues and facts. The appellants had agreements with their principal for certain work, paid service tax on the amounts, and were accused by the Revenue of falling under the Manpower Recruitment and Supply Agency Service category. The consultant argued that the appellants did not fall under this category, citing precedents. The Revenue countered that the appellants admitted their liability. After hearing both sides, the Tribunal examined the agreements and noted that the remuneration was for work done, not labor supplied, following a precedent. The Tribunal found the demand under the Manpower Recruitment Service category unsustainable, as the remuneration was for lump sum work, not labor supplied. Consequently, the impugned orders were set aside, and the appeals were allowed with consequential relief.

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