TaxTMI 
TaxTMI 
2018 (9) TMI 188
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....r, which is subjected to duty of state excise. The appellant was also availing the services of a contractor for supply of manpower and were paying Service Tax on the same, on reverse charge basis. Subsequently they filed refund claims of the Service Tax so paid by them for different periods on the ground that the services received by them from the contractor did not fall under the category of 'Manpower Supply' inasmuch as the said contractor was given complete job of bottling of liquor which amounts to manufacture. As such the payment of duty of Service Tax, by treating the services of the contractor as falling under the category of 'Manpower Supply' were not in accordance with law and they should be refunded the Service Tax so paid by them....
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.... Tax on the services of the contractor was mistake on their part. They further contended that in their case, the entire processing of manufacture/bottling of IMFL was done by the contractor and therefore in terms of the law declared by the Madhya Pradesh High Court in the case of Maa Sharda Wine Traders v. Union of India [2009 (15) S.T.R. 3 (M.P.)], the activity has been held as amounting to manufacture and as such no Service Tax was leviable. 4. The Commissioner(Appeals) considered the said pleas of the appellant in detail and decided against them. Accordingly their appeal was rejected. The said order stands impugned before Tribunal. 5. We have considered the submissions made by both sides and have gone through the impugned orders. ....
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.... to provide manpower to the manufacturing unit for carrying out various activities relatable to bottling of IMFL liquor. As such work is required to be carried out by the various persons supplied by the contractor under the supervision of the assesse's agents or their authorized persons. The same does not amount to carrying out job-work activity by the contractor. 9. We further note from the contracts that the rates mentioned therein are to be paid on actual basis. For better appreciation the relevant paragraphs, as adopted by Commissioner(Appeals) are reproduced below:- i) PF & ESI on actual basis excluding workers share. ii) Salary of 19 holidays on actual basis as per rules of the company on submission of Pay-Sheet d....
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....loyees, who shall be engaged by you under this contract. 12. That this contract shall be effective from 1st April, 2013 to 31st March, 2014, which can be extended on mutual agreement. During the currency of the contract, it can be revised/terminated by the company without notice to you or assigning any reason thereof. However, the company reserves the right to cancel whole or part of the contract at any time and can award the same to any other agency/agencies without assigning any reason thereof. 13. In the case of company carrying out any modification /modernization/demonstration/alteration etc., due to which there is saving in labour employment, then your rates will be revised accordingly on prorata basis. Presently, you....
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....e contract is supply of labour/worman on a daily/monthly basis which makes the nature of the contract clear. 11. We also note that the appellate authority has relied upon various decisions of the Tribunal. In the case of S.M.Auto Engineering (Pvt.) Ltd. v. CCE, Pune [1999 (108) ELT 738 (Tri)], it stands observed that the terms of the contract entered into between assessee and the contractor reveals that the payments are to be made for labour supply and not for job-work or manufacture. In the case of Maruti Udyog v. CCE [2001 (134) ELT 188 (Tri.-Delhi)], it was observed that the terms and conditions of various work orders clearly spelt out a master and servant relationship between appellant on the one hand and the fabricators on the other....