TaxTMI 
TaxTMI 
2019 (3) TMI 42
X X X X Extracts X X X X
X X X X Extracts X X X X
....anufacture of tractors within the manufacturing vicinity of M/s. Tractors and Farm Equipments Ltd. (hereinafter referred to as TAFE). M/s. TAFE had also outsourced the activity of manufacture of tractors to various persons like the appellants herein to carry out specified work / task resulting in the manufacture of tractors. According to the department, the appellants not being independent contractor and worked under the supervision of M/s. TAFE they are to be considered as man power supply agent. It was also noted by the department that contract between the appellant and TAFE was in the nature of labour contract and therefore the appellants have to be considered as man power supplier. 3. Show cause notices were issued to various appella....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he appeal filed by Shri R.Athinarayanan as a sample agreement. It is argued that the said agreement clauses 1,2,3, 7, 11 and 12 would specifically show that this is an agreement entered into for doing works on behalf of TAFE which are in the nature of tyre fitting works etc. and are part of manufacturing activity. The appellants were doing job work on behalf of TAFE and were not engaged by TAFE for supply of man power. It is argued by him that the department has relied upon clause 14 of the agreement to contend that appellant is a labour contractor. Adverting to clause 7 of the agreement, Ld. Counsel submitted that it is evident that appellant was doing job works on behalf of TAFE and there is no employer-employee relationship between emplo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....same would not fall under the category of Man Power Recruitment or Supply Agency Service. 5. On the other hand, Ld. A.R Shri S. Govindarajan supports the findings in the impugned order. He forcibly submitted that the contract is in the nature of a labour contract and the appellants are registered as a labour contractor and have also complied with labour legislations which go to show that they are supplying man power. He relies upon the decision of the Tribunal in the case of R.B. Yadav Vs CCE Raipur - 2017 (4) GST 16 (Tri.-Del.) to canvass strongly that ultimate use of the labour in the factory cannot be the criteria for deciding whether the contract is for supply of man power or not. 6. Heard both sides. The issue is whether the acti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ll not retain any control, supervision or the manner of the discharge, dismissal or retrenchment or re- employment of the workers engaged / employed by the Contractor. ... 14. The Contractor will obtain license under the Contract Labour (Regulation and Abolition) Act according to the number of workers engaged by him by depositing the fees and complying with the formalities. He will also seek the renewal of the contract at or before the expiry of the license." On perusal of the preamble of the agreement itself it is seen that appellant is an independent contractor appointed for executing work that are entrusted to him by TAFE. So also, at clause 3 as well as clause 7, it is stipulated that appellant shall be responsible for the defe....