Job-specific work under purchase orders is not manpower supply service where payment is made on a piece-rate basis.

Identifiable job-specific work performed at client premises under purchase orders for piece-rate consideration was treated as execution of specific work, not manpower supply service. The Tribunal noted that the arrangement involved particular jobs such as shifting of material, with payment linked to completed work rather than salary for supplied labour, and found the first appellate authority's view consistent with the applicable circular and earlier decisions. On that factual matrix, the activity did not attract service tax as manpower supply, the demand remained dropped, and the Revenue's challenge failed.

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Issues: Whether the respondent's activity of undertaking specific jobs at client premises on purchase orders for piece-rate consideration amounted to manpower supply service liable to service tax.

Analysis: The activity described in the show cause notice was the carrying out of specific jobs such as shifting of material, while the respondent was engaged on job-specific purchase orders and was paid on a per-piece basis rather than on salary basis for supplied labour. The first appellate authority had examined the purchase orders and invoices and treated the arrangement as execution of specific work contracts, not mere supply of manpower. The Tribunal found that the factual matrix supported that conclusion and that the lower appellate finding was consistent with the applicable circular and earlier decisions on similar issues.

Conclusion: The activity was not manpower supply service and no service tax liability survived on that basis; the Revenue's challenge failed.

Final Conclusion: The order dropping the demand was upheld and the Revenue's appeal was rejected.

Ratio Decidendi: Where an assessee undertakes identifiable job-specific work under purchase orders for piece-rate consideration, the arrangement is not to be treated as manpower supply merely because labour is used in performance of the work.

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