TaxTMI 
TaxTMI 
2023 (12) TMI 80
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....ed by all the three Appellant societies are similar and were provided to M/s. Heavy Engineering Corporation Limited, Ranchi ('HEC', in short) and the impugned common Order-in-Original has been passed in respect of all the three Appellant societies. Hence, all the three appeals are taken up together for decision by a common order. 3. Briefly stated facts of the case are that all the three Appellant societies during the material period executed various jobs entrusted to them in the plants of HEC, as per the Work Orders issued by HEC, on principal to principal basis. The Department claimed that the services rendered by the Appellants were in the nature of 'Manpower Recruitment or Supply Agency's services, as defined under Section 65 (68) of the Finance Act, 1994 (hereafter referred to as the 'Act', in short) read with Section 65(105) (k) ibid, and demanded service tax. The Appellants submits that as per the relevant work orders such services were not Manpower Recruitment or Supply Agency's service and hence they are not liable to pay service tax. 4. All the three appellant societies were issued two SCNs each and all the six SCNs have been adjudicated by the Ld. Commissioner, Cen....
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....ts submits that the Work Orders clearly reveals that the Appellant societies executed the jobs as the contractors by engaging the workers from their roll and it further reveals that the job was mentioned in terms of quantity and not based on number of workmen supplied or engaged. The rate was fixed per Ton basis. The agreements as per the Work Orders did not require or specify the number of workers to be employed and the number of days for which the workers would be engaged. It is for the respective Appellant societies to execute the jobs, specified in the Work Orders by deploying as many numbers of workers as per its convenience and discretion. As the Principal Company, HEC was interested only in the execution of the job entrusted to the Appellant societies at the agreed rates and also within the specified time frame. HEC as a responsible Public Sector Company, apart from making profit has the social obligation to ensure that the workers employed by the contractors in their factory are not subjected to any exploitation and they are paid their legitimate dues which they are entitled to appropriately and also in time. The Principal Company in discharge of its social commitment and o....
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....appeal documents. 10. We observe that the issue to be decided in the present appeals is whether the Appellant societies acted as manpower supply agencies and the services rendered by them fall within the definition of "Manpower Recruitment & Supply Agency" as per Section 65(68) of the Act read with Section 65(105) (k) ibid and liable to pay Service Tax or not. 11. The definition of the term 'Manpower Recruitment or Supply Agency' is provided under Section 65(68) that read as under:- " "manpower recruitment or supply agency" means any person engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person;" The 'taxable service' liable for service tax is also defined under Section 65(105) (k) which is as under:- "65(105) "taxable service" means any service provided or to be provided, - ...................................... ...................................... (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. - ....
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....r Recruitment & Supply Agency" as defined under Section 65(68) of the Act read with Section 65(105) (k). 13. The Appellant cited various decisions in support of their contention. In the case of, CC,CEX & ST, Aurangabad Vs Shri Samarth Sevabhavi Trust, reported in 2016(41) STR 806 (Bom), it has been held that. The relevant portion of the decision is reproduced below: 5. The question between the parties is whether the services would fall within the definition of "Manpower Recruitment or Supply Agency Services". The definition of this term is mentioned in clause (105)(k) r.w. Section 65(68) of the Finance Act, 1994, which read as under :- "(105)(k) "Taxable service" means any service provided or to be provided 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" "65(68) "manpower recruitment or supply agency" means any person engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person." 6. In view of provisions of Section 65(68) the "Manpower Recruitmen....