2018 (6) TMI 586

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....PR/2015 dated 31.03.2015 and Order-in-Appeal No. 120(SLM) ST/JPR/2015 dated 31.03.2015 respectively. The Respondents are engaged in providing service in relation the Man Power Recruitment of Supply Agency. During the course of an audit of records of M/s. Swastic Casting Pvt. Ltd. (SCPL) it came to the notice that the respondents have supplied manpower to M/s. SCPL during the period 2007-08 to 2011-12 but they neither registered with the Department nor paid Service Tax under the category of "Man Power Recruitment of Supply Agency Service". Therefore show cause notices for demanding Service Tax amounting to Rs. 18, 77,137/-, Rs. 13,14,924/- and 9,24,994/- respectively have been issued and penalty was proposed under Section 76, 77 and 78 of th....

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....er recruitment or supply agency service. He also stated that it is immaterial as to how payments were charged by the respondents and paid by the service recipient, so long as there was clear evidence of supply of manpower by the respondents. Charging of amounts by the service recipient on per kg basis or per man basis was an internal arrangement between the two and did not change the character of actual activity undertaken by the respondents which was clearly of supply of manpower who were respondents' employees. 4. The ld. Advocate for the respondents had submitted that the agreement has entered between the respondents and the principal i.e. M/s. Swastic Casting Pvt. Ltd. (SCPL) who are engaged in the manufacturing activities of manufac....

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....erson, by a manpower recruitment or supply agency in relation to the recruitment or supply of manpower, temporarily or otherwise, in any manner; Explanation.- For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, recruitment or supply of manpower includes services in relation to pre-recruitment screening, verification of the credentials and antecedents of the candidate and authenticity of documents submitted by the candidate. 6. There is no dispute about the fact that the respondents have been paid for completion of the job work as per the quantity of the pieces processed by the employees of the respondents in the factory of M/s. SCPL on the basis of rates specified in Annexure A to the agreement. ....

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.... (India) Ltd. reported in 2005 (181) E.L.T 156 SC and UOI Vs. Mahindra and Mahindra reported in 1995 (76) E.L.T 481 SC, held as under: 9. On a careful consideration of the above reproduced is from the entire case papers, we find the. the contract which has been given to the appellants is for the execution of the work of loading, unloading, bagging, stacking destacking etc. In the the records, we find that there is no whisper of supply manpower to the said M/s. Aspin Wall & Co. or any other recipient of the services in both these appeals. As can be seen from the reproduced contracts and the invoices issued by the appellant that the entire essence of the contract was an execution of work as understood by the appellant and the recipient of ....