2009 (10) TMI 671

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.... 31-10-2008 passed by the Additional Commissioner, Central Excise and Customs, Aurangabad. (hereinafter referred to as "the respondents"). 2. A show cause cum demand notice dated 16-5-2008 was issued to the appellants under F. No. PREV/NTSSK/S.TAX/07/Part-I alleging that the appellants were engaged in providing taxable service under the category of Manpower Recruitment or Supply Agency's Services to M/s. Nagar Taluka SSK Ltd. and received payments for the same from time to time. During the period from 17-11-2005 to 23-5-2007 the appellant had allegedly provided services for which they received an amount of Rs. 4,06,44,466/- on which amount of Service tax was worked out to Rs. 48,81,728/-. Therefore the appellants were issued show cause n....

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....charitable trust duly registered with the charity commissioner, Ahmednagar and the service of Manpower Recruitment Agency was made applicable to "any person" only w.e.f. 1-5-2006. Prior to that the service of Manpower Recruitment Agency was applicable to the providers in the nature of "commercial concern". They were not well conversant with the new levy and therefore there was lapse of non payment of Service tax took place. There was no mala fide intention to evade payment of Service tax. On realizing the mistake they accepted the tax liability w.e.f 1-5-06 and paid the amount of Service tax along with interest before issuance of show cause notice. 6. Personal hearing in the matter was held on 8-9-2009 which was attended to by Shri S.B. ....

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....r, temporarily or otherwise to a client". It means the service should be in relation to recruitment or supply of manpower. 8. In the instant case, the appellant themselves are engaging a work force through sub-contractors for carrying out the work of harvesting and transportation of sugar cane. For executing this assignment, the appellant is receiving payments from the sugar factory and is paying to the sub-contractors engaged by them. It means that the appellant is not supplier of the workers. The Service tax is chargeable on the activity of supply of labour or any activity in connection with supply of labour. 9. The general ledger of M/s. Nagar Taluka SSK Ltd. and of the appellant clearly shows that the payment on account of these a....