Lump-sum cleaning contract was not manpower supply where the contractor executed the work and the recipient only inspected it.

A lump-sum cleaning contract was held not to amount to Manpower Recruitment or Supply Agency Services because the contractor retained responsibility for executing the work, while the recipient only inspected the finished work. The agreements and bills showed engagement for performance of cleaning work, not supply of individual workers under the recipient's supervision and control. As manpower supply requires staff to work under the recipient's direction rather than as contractor-employed labour for a specific job, the demand was not sustainable and the Revenue's case failed.

---

---

Issues: Whether the respondent's activity under the cleaning contract amounted to Manpower Recruitment or Supply Agency Services, or was merely execution of cleaning work on a lump-sum basis.

Analysis: The agreements and bills showed that the respondent was engaged to perform cleaning work for a lump-sum consideration, with responsibility for execution resting on the contractor. The workers were engaged for carrying out the contracted work, and the recipient only inspected the work. The arrangement did not show supply of individual manpower to the recipient under its supervision and control. The circular on manpower supply also indicates that the essence of such service is that the staff are not contractually employed by the recipient but work under its direction, which was not the position here.

Conclusion: The activity did not fall within Manpower Recruitment or Supply Agency Services and the demand could not be sustained. The appeal was rejected in favour of the assessee.

Final Conclusion: The dispute was resolved by holding that the contract was for execution of cleaning work and not for supply of manpower, so the Revenue's demand failed.

Ratio Decidendi: Where a contractor undertakes a lump-sum cleaning contract and retains responsibility for execution, with the recipient merely inspecting the work, the arrangement is not manpower supply service unless individual workers are supplied under the recipient's supervision and control.

---