TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 481
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....o as the "appellant") is a society consisting of retired employees with the Railway Department in their capacity to discharge certain activities/functions pertaining to the Indian Railways. The function of the Society is that after procurement of certain tenders floated by the Indian Railways, if selected, they execute certain works pertaining to the Railways as per the tender awarded to them. Since workforce in the society consists of persons who had previous experience of executing such functions and as per requirement of a specific tender, they used to undertake the jobs by deploying staff having experience in that field. Sometimes, they had to arrange and provide 'tools and tackles etc. for execution of the particular job by engaging pe....
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....n the ground that a summon under Section 14 of the Central Excise Act, 1944 was issued to them before 1st March, 2013 and an enquiry was being conducted by the Department against them and the same was pending. Against the denial of benefit of the scheme, the appellant had approached the Hon'ble Patna High Court vide Civil Writ No. CWJC-2158/2015. Before decision in the Writ Petition, the Commissioner of Central Excise & Service Tax, Patna adjudicated the SCN dated 23.10.2013 vide the impugned Order dated 04.08.2015 wherein the entire service tax demand of Rs.1,04,39,355/- was confirmed and Rs. 66,68,796/- [Rs. 23,92,736/- + Rs. 40,00,000/-] already paid by the appellant was appropriated. The Ld. adjudicating authority also demanded interest....
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....f 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. 5.2. In their case, the appellant submits, after getting the tender floated by Indian Railways, they have to enter into an agreement showing the value of the contract and Schedule of Rate against 'Name of Work. 'Name of Work' indicates Manning of TSS (Railway Traction Sub Station) at DNR (Danapur Railway Station), ARA etc over a particular division of the Railways. TSS in Railways means Railway Traction Sub-Station; the nature of work provided by them are enumerated in detail under the 'Special Conditions of....
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....s conversant with such jobs. The department considered the activity undertaken by the appellant as a taxable service liable for service tax under the category of 'manpower recruitment or supply agency service' and confirmed the demand of service tax under the said category. The submission of the appellant is that they engage persons and undertake complete works pertaining to railways and hence the said activity cannot be considered as a taxable service liable for service tax under the category of 'manpower recruitment or supply agency service'. 8.1. For ready reference, the definition of 'Manpower recruitment or supply agency service' as defined under Section 65 (105) (k) of Finance Act, 1994 is reproduced below: any service provided or ....
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....t a 'man power supply agency'. We find that the appellant has undertaken the work of Manning of Railway Traction Sub Station at Danapur Railway Station. This indicates that the appellant have undertaken the complete work related to manning the Railway Traction Sub-Station and not merely engaged the persons and gave it to Railways. The Scope of work as mentioned in the Contract clearly reveals that the works undertaken by them does not related to engagement of man power alone for the work. The manpower has been used by them to undertake the work. Hence, we hold that the said activity undertaken by the appellant/assessee cannot be categorized as 'man power recruitment and supply agency service'. Accordingly, we hold that the d....