AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (5) TMI 393
X X X X Extracts X X X X
X X X X Extracts X X X X
....r "Manpower recruitment or supply agency" service. As all the facts in these appeals are similar and the issue involved is identical, these appeals have been taken up together for disposal by this common order. The details of the notices issued and the orders of the lower adjudicating authorities, amount of tax and the interest demanded and penalties imposed, period involved etc. are summarized below in a tabular form for ready reference:- 1.2 In terms of the written contracts entered into with Livia, all these appellants have provided the services of packing, loading & unloading and cleaning of the factory premises (specified jobs). The jobs entrusted to the appellants included collection of bottles, visual examination of the same, fixing the lids/closure, affixing labels, placing the bottles in a separate polythene cover and packing the bottles in the carton boxes. The appellants are also required to provide assistance for loading/unloading of raw materials and finished goods. It appears that the appellants were paid for the services rendered to Livia on rate-contract basis. The main features of the agreement are as under:- a) The appellants have undertaken to provide....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts are engaged in the supply of manpower as there is an employee-employer relationship between the appellants and the persons carrying out the specified works, and as they are complying with various labour laws, so are liable to pay service tax on the consideration received on Manpower supply service. The contract is for providing temporary supply of labour which is its real intention and the ingredients of the supply of manpower service as defined under the Finance Act are satisfied in these cases. 1.5 In the impugned order reliance is placed on the decision rendered in the case of Jivanbhai Makwana Vs. CCE, Ahmedabad - 2010 (18) STR 206 (Tri.-Ahmd.), where the assessee was entrusted with the jobs of keeping the premises clean, cleaning of bathrooms and toilets, providing drinking water and supply of coffee and tea to the staff, providing services of loading and unloading without specifying the number of labourers to be provided but only items of work to be carried out, the co-ordinate CESTAT Bench had held that the impugned contract was to be considered as labour contract for supply of manpower. Similarly, in the case of Renu Singh & Co. Vs. CCE - 2007 (7) STR 397, it has been....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e under the control/supervision of the service provider Clause 10 Learned Advocate has further submitted that the issue involved in these appeals is covered by several decisions of the Tribunal wherein it was held that where agreements are entered for execution of lump-sum work such as packing, loading & unloading and cleaning on per piece rate basis, the same cannot be held as Manpower supply services. Reliance in this regard is placed on the following decisions:- i) Donypolo Udyog Ltd. Vs. CCE & ST, Indore 2023 (3) TMI 539 - CESTAT, New Delhi. ii) Mr. G. Sakthivel & Ors. Vs. CGST & CE, Madurai 2020 (5) TMI 909 - CESTAT, Chennai iii) K. Balakrishnan & Anr. Vs. CGST & CE, Madurai 2021 (9) TMI 181 - CESTAT, Chennai iv) Arul Prakasam & Ors. Vs. CGST & CE, Chennai 2021 (8) TMI 1063 - CESTAT, Chennai v) G. Ramakrishnan & Ors. Vs. CGST & CE, Chennai 2019 (3) TMI 42 - CESTAT, Chennai vi) S. Balasubramani & Anr. Vs. CCE, Trichy 2019 (3) TMI 1392 - CESTAT, Chennai vii) CCE & ST Vs.Godavari Khore Cane Transport Co. P. Ltd. 2015 (3) TMI 483 - Bombay HC. 2.2 It is also submitted by the learned Advocate that the demand of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....real intention of the contract was supply of manpower but the contract was artificially incorporated with certain conditions to lend the contract an attire of a work and the contract was for providing temporary supply of manpower only who were engaged for a specified period or for completion of particular projects or tasks. Considering the ingredients of the definition of taxable service "Manpower recruitment or supply Agency" and obligations undertaken under different labour and welfare laws by the appellants would indicate that the services rendered by the appellants would be coming under manpower supply service. Further, he has drawn our attention to the decision of the Hon'ble Apex court in the case of Adiraj Manpower Services Pvt. Ltd. Vs. CCE, Pune-II - 2022 (58) GSTL 137 (S.C.), wherein services provided by the contractor for supply of skilled and unskilled manpower for carrying out activities like material handling, felting, pouring and supply of cast machine parts and painting within the factory premises and where consideration was settled as per the schedule of rates agreed upon on the basis of quantum of specific works performed as a contract for supply of labour. He....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Livia, we find that specific jobs were assigned to the appellants for execution of the work of packing, loading, unloading and cleaning etc. It can be seen from the invoices issued by the appellants, the service charges were paid on the basis of the quantum of work handled. A copy of one of the labour bills issued by the appellant is extracted below:- 5.5 We find that regarding Revenue's reliance on the decision rendered in Adhiraj Manpower Services Pvt. Ltd Vs. CCE, Pune-II (supra) is not applicable since the same is distinguishable, as the facts involved are different and the issue involved therein was the appropriate classification of the services of the appellant whether under "Job work" or under "Manpower Recruitment or Supply Agency" service. The issue before the Court was whether the appellant is a Job Worker within the meaning of the exemption Notification dated 20.06.2012 or is merely a supplier of contract labour for work of the establishment. Hon'ble Apex court has concluded after going through the agreement that the appellant is not a job worker due to conspicuous absence of any reference to the following:- i) The nature of the process of work whic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2013 89/2013 dated 78/2013 dated 87/2013 dated 86/2013 dated 31.07.2013 30.07.2013 31.07.2013 31.07.2013 date O-I-O No. & 19/2013 dated date 27.03.2013 18/2013 dated 27.03.2013 16/2013 dated 27.03.2013 17/2013 dated 20/2013 dated 27.03.2013 27.03.2013 SCN No. & 36/2011 dated 32/2011 dated 22/2011 dated 37/2011 dates 35/2011 dated date Period 29.09.2011 2008-09 29.09.2011 09.06.2011 29.09.2011 29.09.2011 to 2006-07 to 2008-09 to 2006-07 to 2006-07 to 2010- Involved 2010-11 2010-11 2010-11 2010-11 Amount Tax- Tax- Tax- Tax- involved Rs.8,67,771/- Rs.16,71,561/- Rs.8,22,481/- (Tax and Interest- Interest- Interest- Interest fully Rs.4,12,243/- Rs.10,88,412/- Rs.4,57,736/- Rs.6,87,378/- Interest- Rs.3,19,091/- Rs.21,28,841/- paid under Penalty (S.78)- Penalty (S.78)- Penalty (S.78) protest) Rs.8,67,771/- 16,71,561/- Rs. 8,22,481/- Penalty (S.78)- Rs. 6,87,378/- (25% of S. 78 Penalty (S.77)- Penalty (S.77)- Penalty (S.77)- Penalty paid Rs. 1000 Rs. 1000 Rs. 200/- per Penalty (S.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t arising out of, and in the course of employment to any of the workmen employed by the Contractor, it is agreed that the Contractor alone shall liable for payment of compensation as per the law applicable and in any event, if the Principal is asked to pay or pay compensation, then the Contractor shall reimburse the amount or alternatively the Principal shall have the right to deduct out of the payment due to him, if necessary in more than one instalments. 9. It is agreed that in respect of employment or non-employment, terms of employment or conditions of service of the workmen employed by the Contractor, the Contractor alone will be liable or responsible and the Principal will not in any manner be liable or responsible. 10. It is agreed that the supervision or control over the work of the persons employed by the Contractor shall be with the Contractor himself or his representatives and the Principal will not in any manner supervise or control the work of such employees of the Contractor. Document 3 11. The Contractor agrees that in the event of any complaint in respect of behavioural attitude of the workmen employed by him, or any....