2025 (4) TMI 1763 - AT - Service Tax

Manpower recruitment or supply agency service appeal against service tax liability rejected; departmental position upheld.

Manpower recruitment or supply agency services provided to five hotels were contested on the question of service tax liability; the adjudicating authority ... Manpower recruitment or supply agency service - adjudication of show cause notice - service tax liability - HELD THAT:- The issue involved in this appeal relates to manpower recruitment or supply agency service to the five hotels. For the reasons stated in the order of date passed in Service Tax Appeal filed by the department and Service Tax Appeal filed by ITC, the contention advanced by the learned senior counsel assisted by Ms. Mallika Joshi for ITC cannot be accepted. This appeal, therefore, deserves to be dismissed and is dismissed. Issues: Whether the supply of manpower (recruitment or supply agency service) to five hotels during the relevant periods constitutes a taxable service attracting service tax.Analysis: The Tribunal examined the nature of the services rendered relating to provision of manpower to hotels and applied the legal framework governing taxable services and departmental adjudication of service tax liability for the relevant periods. The Tribunal considered and followed the reasoning set out in the connected earlier order on similar issues, finding that the contention advanced on behalf of the assessee regarding non-applicability of service tax to the manpower supply could not be accepted based on the facts and law examined in the related decision.Conclusion: The supply of manpower in question is taxable and the departmental view is upheld; the challenge to the adjudication is rejected in favour of the Revenue.Final Conclusion: The appeal is dismissed and the adjudicating authority's determination of service tax liability for the periods in question is upheld.