TaxTMI 
TaxTMI 
2023 (12) TMI 80
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....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, Central Excise & Service Tax, Jamshedpur, by passing the common Orde....
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....er 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 obligation has ensured that the workers, working for them, although were in the roll of the Appellant societies, are not exploited and the provisions of the Contract Labour (Regulations and Abolition) Act, 1970 are complied with. The wage bills of....
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.... 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. - 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;" 12. A plain re....
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....ortion 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 Recruitment or Supply Agency Services" means any person providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person, and Section 65(105)(k) defines the taxable services for providing such services. From the above definitions, it is rather clear that it envisages supply of labo....