Tribunal rules in favor of charitable trust in service tax liability case

The Tribunal set aside the order-in-original, ruling in favor of the appellant, a charitable trust, in a service tax liability case related to "manpower recruitment and supply agency service." The Tribunal referenced judgments from the High Court of Bombay, establishing that services provided by the appellant were not covered under the said category. Consequently, the impugned order was deemed unsustainable, and the appeal was allowed with consequential relief, if applicable.

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Issues involved:
Service tax liability on appellant under the category of "manpower recruitment and supply agency service"

Analysis:
The appeal was directed against an order-in-original dated 21.05.2012. The issue revolved around the service tax liability on the appellant under the category of "manpower recruitment and supply agency service." The appellant, a charitable trust, was executing a contractual obligation for harvesting and transporting sugar cane on behalf of sugar cane producers. The adjudicating authority found the payment received by the appellant taxable under the said category. However, it was noted that similar cases had been addressed by the Hon'ble High Court of Bombay, where it was established that such services were not covered under "manpower recruitment and supply agency services." Citing judgments in cases like CCE v. Shri Samarth Sevabhavi Trust & Ors. and CCE v. Godavari Khore Cane Transport Co. (P) Ltd., the Tribunal concluded that the issue was settled by the jurisdictional High Court. Consequently, the impugned order was deemed unsustainable and set aside, allowing the appeal with consequential relief, if any.

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