2015 (10) TMI 2220

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....he sides and perused the records. 3. The issue involved in this case is whether the appellant is liable to discharge service tax liability on the services rendered by him under "Manpower Recruitment and Supply Agency Service" and "Cleaning Activity Service". Both the lower authorities have held that the appellants contract for accepting the welding job and cleaning services on lumpsum service is taxable. Accordingly demands were confirmed with interest and penalties were imposed. 4. At the outset learned counsel submit that as regards cleaning activity service they are not seriously contesting the issue on merits and have already discharged service tax liability along with interest. It is his submission that the penalties imposed on ....

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....eaning activity services. We uphold the service tax liability along with interest on cleaning activity services and to that extent the appeal is rejected. 7. As regards service tax liability under the "Manpower Recruitment and Supply Agency Service", on perusal of the work order issued by NTPC, we find that the work order specifically talks about the acceptance of work on a firm rate basis for welding, and gas cutting on various locations of NTPC. A perusal of the work order does not indicate that the appellant is required to supply only the manpower. On the contrary, scope of the work order indicates a specific job of welding and gas cutting to be undertaken by the appellant. The findings recorded by the first appellate authority also d....

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....idually or through some other agencies but how was such work done was not the concern of the sugar factory. Harvesting sugarcane, at-least today, is a labour intensive activity. Very soon, this work would be done mechanically. So, the nature of work undertaken by the respondent must be understood in the context in which it was understood by the respondent and its principal-sugar factory. This interpretation of the agreement between the respondent and its principal is in tune with the Judgment of the Supreme Court in the case of Super Poly Fabriks Ltd. Vs. Commissioner of C. Ex., Punjab, reported in 2008 (10) S.T.R . 545 (S.C.) = 2008- TIOL -82-SC-ST. Paragraph No. 8 of the said judgment can be relied upon to drag the point home, which reads....