2016 (7) TMI 90

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..... Pursuant to search operations, some documents were recovered which were contracts entered by respondents with M/s Hindustan Zinc Ltd. Visakhapatnam. The department entertained the view that though the contracts were in connection with Material Handling within Plant Premises and Grinding of Calcine Lump etc, the principal activity of the respondent is to provide labour for completion of specified work for M/s Hindustan Zinc Ltd, and that therefore, the respondents are liable to pay service tax under the category manpower, recruitment or supply agency service. A show cause notice dated 25-02-2010 was issued for the period 9/2005 to 3/2008. After due process of law, the original authority confirmed the demand of Rs. 13,68,145/- along with in....

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....that it is a service falling under manpower recruitment and supply agency service. He pleaded that the appeal may be allowed. 4. Against this, the learned counsel Ms. A.S.K.Sweta appearing for the respondents supported the findings in the impugned order. She argued that the Commissioner (Appeals) has perused the entire contracts/work orders and relevant portions have been reproduced in the impugned order. As per these work orders, respondents have the responsibility for completion of the job in the manner prescribed in the work schedule/work order. The work orders show that the rate is fixed for the unit/amount of job done and not according to supply of manpower.  It is for the respondents to employ skilled labour and while employin....

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.... whether the activities in the contract would fall into the category of manpower supply agency service. On bare perusal of the work order/work schedule, it is seen that it does not state that particular number of labour/employees should be recruited. The payment is fixed according to the work executed and not according to the number of persons employed. As per the agreement, the respondents are to execute the activities described in work schedule in the premises. The payment is paid as per completion of the work and not according to the labour employed. Further, it is the respondent who is responsible for the completion of the work as per work order. The intention of the parties to the agreement is that it is a lumpsum contract for material....