2024 (12) TMI 277

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....od from 2010-11 to 2014-15. The charge for the above activities, is on the basis of quantum of work and not on the basis of number of manpower or manhours involved in the said job. 1.1 The case of the department is that the appellants have provided the service of "Manpower Recruitment or Supply Agency Services" under Section 65(68) of the Finance Act. Accordingly, a show cause notice dated 19.10.2015, demanding Service Tax, interest and imposing penalty was issued which was adjudicated by the adjudicating authority, whereby the demand upto 30.06.2012 was confirmed under "Manpower Recruitment or Supply Agency Services" and from 01.07.2012 onwards under the service in terms of 65(b)44 of the Finance Act, 1994. 1.2 Being aggrieved by the Ord....

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....ply Agency Services". Hence, the demand confirmed by the lower authorities is correct. 4. We have carefully considered the submission made by both the sides and perused the records. 4.1 We find that the period involved in the present case is divided into two parts, one is upto 30.06.2012 and second post 01.07.2012. For the period up to 30.06.2012, there was a concept of classification of service. The department has classified service under "Manpower Recruitment or Supply Agency Services". In this regard it is necessary to refer to the contract between the appellant and their client. On perusal of such contract, we find that firstly the contract is not for supply of manpower but for undertaking particular jobs involving filling and packing....

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.... destacking Records silent on supply of manpower- Essence of contract was execution of work as per contract and invoices- Tenor of agreement and purchase orders indicating execution of lump-sum work as understood by appellant and service recipient - No agreement for utilization of services of an individual- Lump-sum work or job not covered under Manpower Recruitment or supply Agency service - Impugned order set aside- Section 65(68) of Finance ACT, 1994. (Paras 9,11,12). c) In the case of K. DAMODARAREDDY 2010 (19) S.T.R. 593 (Tri. Bang.) it has been held that:- "6. We have heard both sides. We find that the appellant had carried out the activities of loading of cement bags into wagons, spillage cleaning, stenciling, wagon door opening/c....

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....r Heading 04.02 of Central Excise Tarif Act, 1985. For the purpose of this particular chapter, the 3rd scheduled as provided under Section 2(f) is applicable. According to which activities such as packing/labeling or any other treatment which render the product marketable, is amount to manufacture. In the present case, the appellants have carried out packing of milk in the pouches and various other activities which obviously for rendering a product marketable. Therefore, their activity amount to manufacture in terms of Section 2(f) of Central Excise Act, 1944. Accordingly, the same is covered under exemption Notification No. 25/2012-ST dated 20.06.2012 under Sr. No. 30 which reads as under: - "30. Services by way of carrying out,- (i) a....