2024 (6) TMI 847

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....t is a small-scale unit, manufacturing flush doors. On scrutiny of their records, it was found that they had raised labour charge invoices for door fixing & alteration, designing & carpentry work at customer's site. A Show Cause Notice was issued to the appellant as the activity appeared to fall under the category of 'Manpower Recruitment of Supply Agency Service' as per the definition under Section 65(68) of the Finance Act, 1994 since the Appellant had failed to register, file statutory ST-3 Returns and pay service tax for the amount received towards such service rendered by them. After due process of law, the Adjudicating Authority confirmed the demand of an amount of Rs 5,62,192/- for the period from April 2005 to March 2009....

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.... They are in the nature of reimbursable charges which are not subject to service tax as per the Judgment of the Hon'ble Supreme Court in Inter-Continental Consultants and technocrats 2018 (10) G.S.T.L. 401 (S.C.). There was no evidence before the respondent authorities showing that they are a manpower agency supplying man power/ labourers. The service recipient was also not charged on man hour or per day wages basis but only the labour charges for the work carried out. The carpenters are their own masters and they were not working under the control or direction of any other persons. The subsequent Board's circular dated 15.12.2015 clarifying the nature of the services that fall under man power supply service provider also fully supports the....

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....uyers' premises. The issue involves a mixed question of fact and law. This question has come up before Constitutional courts in the past on how to determine whether a person is an employee or not. The Supreme Court in various cases have stated that no one test of universal application can be depended upon to give the correct result. Some of the judgments the Supreme Court that which laid out the different tests are listed below; i) the employer's level of control over the persons engaged should be high and the persons could be directed about not only what work to do, but also how to do it. (Control and Supervision Test) [See Shivnandan Sharma v. Punjab National Bank Ltd. [1955 AIR 404, 1955 SCR (1)1427] ii) whether the persons were inte....

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....ive list of tests to discern the relationship between the parties. For example, from the textbook scenario of 'complete control' to 'complete independence' lies a variety of circumstances involving a wide range of initiative and discretion being enjoyed by the worker. In fact, Courts and Tribunals in different cases, have used 'multiple sets of factors' test while deciding these relationships. What is critical is that it is essential to examine and test the nature of relationship between the parties before arriving at a conclusion. Mere reference to invoices raised or payments made, without reference to the specific provisions of a contract or working arrangement, will not be indicative of employer-employee relationship. 9. Para 14 and 15 ....