TaxTMI 
TaxTMI 
2019 (6) TMI 11
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....2008. Since the issue involved is identical, both the appeals are taken up for decision through this common order. 2.1 Brief facts of the case are that M/s Assam Petroleum Ltd. (APL) entered into certain agreements with M/s ONGC as well as M/s Oil India Ltd.. Likewise, M/s Flotech Consultant & Services Pvt. Ltd. (FCSP), entered into an agreement with M/s ONGC. In terms of the agreement entered by APL, they were required to carry out the workover/service operation of oil and gas oil rigs and injector oil rigs of ONGC. For carrying out such operation, they were required to mobilize the required manpower possessing specific qualifications and competence. For carrying out such services, they would be paid a lumsum operating day rate per rig ....
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....in grounds : (i) The activities carried out by both the service providers for M/s ONGC/Oil India Ltd., are not in the nature of either recruitment of manpower or supply thereof. The definition of the above service covered only recruitment of manpower upto the period 15.06.2005 and after such date, also included supply of manpower. It is argued that for the period prior to 16.06.2005 as well as for the subsequent period, the activities will not be covered by the definition of Manpower Recruitment or Supply Agency Service. (ii) In respect of FCSP, it is submitted that the activity included operations as well as maintenance of drilling rigs. The ld.Advocate took us through the various terms of the contract and submitted that ....
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.... (a) Cauvery Enterprises Vs. CST : 2018-VIL-605-CESTAT-CHEST ; (b) Indira Industrial Labour Welfare Association Vs.CCE & S.T. : 2018-VIL-597-CESTAT-CHE-ST ; (c) A Malathy Proprietrix of Arun Enterprises Vs. CCE : 2018- VIL-593-CESTAT-CHE-ST. 5. The ld.D.R. justified the impugned order passed by the adjudicating authority. He referred to the findings of the adjudicating authority in both cases to the effect that the agreement entered into by the service provider, indicates that the service providers have supplied manpower for carrying out the work entrusted by ONGC. He argued that the definition of Manpower Recruitment or Supply Agency Service is wide enough to cover such situation since it cannot be denied that the ac....
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....ed in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to a client". 9. As observed earlier, the terms of contract indicate that the appellants were not required to merely supply manpower or make such manpower available to M/s ONGC, but were required to carry out the task outlined in the agreement. We find that similar issue arose in the case of M/s Cauvery Enterprises (supra), wherein the Chennai Bench of the Tribunal had occasion to examine the liability for service tax in respect of a similar contract. The observations of the Tribunal in the above case, are reproduced below : "5.3 At the same time, there are a number of services which require engagem....
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....n paid is not on the basis of number of persons employed but on the basis of work executed, such activity cannot be called as "Manpower Recruitment or Supply Agency Service". 5.6 In fact, the CESTAT Chennai Bench of the Tribunal in a recent decision in Indira Industrial Labour Welfare Association Vs CCE & ST Chennai - 2018 (6) TMI 1363 - CESTAT Chennai, also relied upon supra by the Ld. Advocate, relying upon its own earlier decision in the case of A. Malathy Vs CCE Chennai vide Final Order No.40888/2018 dt. 13.3.2018 and also decision of CESTAT 8 Appeal No.ST/176/2012 Mumbai in Bhagyashree Enterprises - 2017 (3) TMI 786 CESTAT Mumbai has held as under : "5.1 From a perusal of the contracts, two dated 06.08.2005 and one da....
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....ard both sides. The foremost issue for consideration is whether the activity of bagging and shipping work executed by the appellant as per the contract for bagging and shipping amounts to 'supply of man power' or not. .... ...... .... 6.3 As regards the service tax liability under the category of manpower recruitment or supply agency service, for the services rendered to KLL, we find that the adjudicating authority has misconstrued the provisions and misdirected the findings to hold that the services would fall under the category of 'manpower recruitment or supply agency services'. On perusal of the agreement entered by the appellants with KLL, we find that the said agreement specifically indicates about the consideration to be pai....