Labour supply vs job work

[BAL KRISHAN GARG]

X IS DOING JOB WORK ON PIECE RATE BASIS ON MATERIAL PROVIDED BY Y IN Y'S PREMISES ALONGWITH HIS LABOUR.DISPUTE ARISE MANPOWER'SAGENCY IN SER.TAX AND THE AC OF DIVISION HAD MADE THE NECESSARY ENQUIRY INCLUDING DOCUMENTS AND THE CASE FIGHT IN AC'S OFFICE AND HE CONCLUDED THAT X IS NOT PROVIDING LABOUR TO Y BUT X IS DOING JOB WORK.THIS FINDING HE HAS FORWARDED TO HIS REPORTING AUTHORITY . NOW THE SUPRINDENT OF THE DIVISION HAS ASKED ME TO MEET WITH THE AUDIT PARTY IN THE HEADQUARTER AND ADVISE TO SETTLE THE CASE AT AUDITOR'S LEVEL. MY QUERY IS WHEN THE CONCERNED AUTHORITY HAVE COMPLETELY MADE ENQUIRY IN THE CASE AND HE HAS FORWARDED HIS FINDINGS TO THE AUTHORITY CONCERNED IS THERE ANY NEED TO APPROACH TO THE AUDIT PARTY FOR THE SETTLEMENT. WHETHER AUDIT PARTY HAS MORE POWER PARTICULAR IN THE CASE WHEN AC HAS MADE ALL ENQUIRY INCLUDING MY PRESENCE AS A LEGAL CONSULTANT FOR THE CLIENT. I HAVE SUBMITTED ALL THE RELATED DOCUMENTS IN WHICH I CAN PROVE THAT IT IS NOT A LABOUR SUPPLY CASE BUT IT IS SIMPLE A JOB WORK CASE AND HE ACCEPTED MY PLEA. ALTHOUGH HIS FINDING HAS NOT COMMUNICATED TO ME IN WRITING BUT I HAVE SEEN THE LETTER WHICH HE WRITTEN IN WHICH HE ACCETPED ME PLEA . CAN ANYBODY BE CORRECT APPROACH SO I CAN PROCEEDS FURTHER. THANKS TO ALL B.K.GARG

AI Summary

Service Provider's Job Work Status Confirmed; No Need to Engage with Audit Party Without Show Cause Notice. A dispute arose regarding whether a service provider, X, was supplying labor or performing job work for Y. The Assistant Commissioner (AC) concluded that X was doing job work and not labor supply, forwarding this finding to higher authorities. Despite this, the audit party requested a meeting to settle the case. The query was whether approaching the audit party was necessary after the AC's favorable findings. Responses advised against unnecessary engagement with the audit party, emphasizing that they lack the authority to enforce tax deposits without a Show Cause Notice, and suggested documenting objections to any harassment.