TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 547
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.... unloading of coal from railway wagons and for its transportation to the coal yard. It appears that a contract was entered by M/s. Bharat Heavy Electricals Ltd., Trichy with M/s. BHEL Complex Co-operative Labour Contract Society Ltd., Trichy (hereinafter referred to as the "Society") for unloading of coal from wagons, shifting and stacking at the coal yard. The appellant had hired JCBs, Front Loaders and Tipper Lorries for providing the above services, along with required labourers. 2. When the accounts of the Society were audited, the Officers have noticed certain payments being made by the Society to the appellant, who is a sub-contractor, during the period from 2007-08 to 2009-10. Consequently, a Show Cause Notice dated 29.09.2011 was i....
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....ipient i.e., the Society, and that from the records it was clear that the Society had already paid the Service Tax under the head 'manpower recruitment or supply agency' service on the entire consideration received from M/s. BHEL, Trichy and as such, the demand of Service Tax once again under 'manpower recruitment or supply agency' on the sub-contractor would not be legally sustainable. 4.3 The appellant has further submitted that he is not required to take registration under Service Tax law as he is not liable to pay Service Tax for the goods transport agency (GTA) services rendered and thus he was under the bona fide belief that the services rendered by him are not at all liable for payment of Service Tax and as such, the proposal for in....
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....f the Act. 4.5 He has also referred to the provisions of Section 67 of the Finance Act, 1994 which provides for treating the gross-amount received as inclusive of tax for computation of the demanded tax. 4.6 Shri G. Natarajan, Learned Advocate appearing for the appellant, firstly reiterated the submissions as incorporated in the grounds-of-appeal. Then, he has drawn our attention to the decision rendered in the case of M/s. Ritesh Enterprises v. Commissioner of Central Excise, Bangalore [2010 (18) S.T.R. 17 (Tribunal - Bangalore)] wherein it has been held: - "9. On a careful consideration of the above reproduced facts from the entire case papers, we find that the contract which has been given to the appellants is for the execution of th....
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.... and the purchase orders issued by the appellants' service recipient clearly indicates the execution of a lump-sum work. In our opinion this lump-sum work would not fall under the category of providing of service of supply of manpower temporarily or otherwise either directly or indirectly." 5.1 Shri M. Ambe, Learned Authorized Representative appearing for the Revenue, has stated that M/s. BHEL Complex Co-operative Labour Contract Society Ltd., Trichy have registered under 'manpower recruitment or supply agency' service with the Department for supply of manpower to M/s. BHEL, Trichy. On the basis of audit of the accounts of this Society, to whom the appellant has worked as a sub-contractor, it appeared that the contract envisaged unloading ....
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.... relating to manpower recruitment or supply agency service is defined under Section 65 (105) (k) of the Finance Act, 1994 as under: - "(k) to any person, 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;" 8.3.1 Thus, in order to attract the levy of Service Tax under manpower recruitment or supply agency service, it is clear that the....
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....ssification of the services provided by him are not under manpower recruitment or supply agency service. 11. The appellant has repeatedly put forth that he has been paid for the services rendered on the basis of quantity of coal handled, by M/s. BHEL Complex Co-operative Labour Contract Society Ltd., Trichy. When specifically asked for an Agreement copy by the appellant with M/s. BHEL Complex Co-operative Labour Contract Society Ltd., the Learned Advocate for the appellant has stated that such a written contract was not entered into. However, he has stated that the appellant was paid on the basis of quantity of coal unloaded and transported. The documents extracted supra reveal that both the Society and the appellant were paid and consider....