TaxTMI 
TaxTMI 
2025 (5) TMI 1897
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.... the Commissioner of Central Excise (Appeals-II), Chennai upholding the Order-in-Original No. 24/2014-ST dated 12.08.2014 passed by the Assistant Commissioner of Central Excise, Cuddalore Division demanding service tax along with interest and also imposing penalties. 2.1 The Appellants are engaged in the manufacture of Sugar and Molasses and are also catering to the needs of registered cane growers in their Cane area towards supply of seeds and arranging gangs. The gangs are groups of workers specialized in identifying the cane ripe for cutting and also cutting sugarcane and assisting in transportation to the sugar mill. The gangs are paid by the appellants, and the charges are adjusted in the final bill of the cane growers. 2.2 The Depar....
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....nly issue that is required to be decided in this appeal is whether the Appellants are involved in providing the service of Manpower Recruitment or Supply Agency Service under Section 65(68) of the Finance Act, 1994. 7. The Ld. Advocate has further put forth that they had not rendered any service and had not raised any invoice for the service charges and did not receive any payment for alleged services. From the appellate records, it is revealed that the farmers themselves arranged for cutting and harvesting sugarcane and in cases where the farmers / growers are not able to get persons for cutting and harvesting sugarcane, they used to approach the cane offices of the appellants who would give the name and addresses of the laborers also cal....
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....n 65(68) of the Finance Act, 1994. The appellant has replied to the show cause notice dated 5-4-2011. It is explained by the appellant that there is no employer and employee relationship between the cutting labourers and the appellant. The appellant company has no say in the rate for cutting demanded by the labourers and the labourers have got every right to deny to cut for a particular sugarcane grower. The mill simply manufactures the sugar with regard to the availability of the cutting labourers only. Being a Government undertaking, it can be seen that all appointments are to be made in the muster roll of the sugar mill. From the facts on record, it cannot be said that the appellants have provided harvesting labourers to the sugarcane gr....