Manpower Recruitment Service classification failed where supplying models for advertising and films did not amount to recruitment to a client.

Supplying models for advertising and for TV serials/films did not fall within the then-applicable definition of "Manpower Recruitment Agency" under the Finance Act, 1994, because that definition covered a commercial concern engaged in recruitment of manpower to a client. The later amended definition could not be applied to the earlier period, so the activity was not taxable under that head for the relevant years and the classification-based demand could not stand. The impugned order was therefore unsustainable and the appeal succeeded.

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Issues: Whether the activity of supplying models for advertising purposes and for TV serials/films during the relevant period fell within the taxable service of "Manpower Recruitment Agency".

Analysis: The relevant definition of "Manpower Recruitment Agency" under section 65 of the Finance Act, 1994, as it stood during 2001-02 and 2002-03, covered a commercial concern engaged in providing service for recruitment of manpower to a client. The appellant's activity was confined to supplying models for advertising and for TV serials/films, and the amended definition introduced later could not govern the earlier period. On that basis, the service rendered did not satisfy the then-existing statutory definition.

Conclusion: The activity was not taxable under the head "Manpower Recruitment Agency" for the relevant period and the impugned order was unsustainable.

Final Conclusion: The appeal succeeded and the demand based on the impugned classification was set aside.

Ratio Decidendi: For the relevant period, supply of models for advertising or entertainment assignments did not amount to manpower recruitment service unless the provider was engaged in recruitment of manpower to a client under the then-applicable statutory definition.

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