TaxTMI 
TaxTMI 
2025 (11) TMI 1702
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.... (impugned order). 2. Brief facts of the case are that the appellant is a manufacturer of tractor and parts of tractors and holds a Central Excise registration certificate. They are also registered with the Service Tax Department for payment of Service Tax. It appeared to the department that the appellant was utilizing the services of various manpower suppliers who were providing labour for carrying out various activities in the appellant Company. These manpower suppliers were not registered with the department and did not pay Service Tax. Supply of labour is a taxable service classifiable under 'Manpower Recruitment or Supply Agency' service for which service providers are liable to pay tax on 25% of service charges received and service....
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....emand Rs. 1,40,40,227/- Rs. 1,50,22,801/- Interest Not quantified. As per Section 75 of the Finance Act, 1994. Not quantified. As per Section 75 of the Finance Act, 1994. Penalty Rs. 14,04,023/- under Section 76 of the Finance Act, 1994. Rs. 10,000/- under Section 77 of the Finance Act, 1994. Rs. 15,02,280/- under Section 76 of the Finance Act, 1994. Rs. 10,000/- under Section 77 of the Finance Act, 1994. He stated that the appellant hired independent contractors to manufacture and clear tractors, with each contractor using their own employees and managing specific tasks under separate agreements. These contractors collected payment including Service tax from the appellant and paid the tax themselves, starti....
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.... is based on mere assumptions. The Tribunal had set aside the demand, ruling that services from independent contractors do not constitute 'supply of manpower'. No appeal appears to have been filed against these orders, making them final. Boards Circular No. 190/9/2015-ST dated 15.12.2015 clarified that services from independent contractors are not taxable as manpower supply, based on similar agreements. The Ld. Counsel provided a table comparing relevant clauses in the Circular and the Agreement between the Appellant and the contractors. S. No Clauses as per the Circular Relevant Clause in the Agreement 1 The Contractor is engaged for undertaking specific jobs. The purchase orders are issued for carrying out spe....
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....r. The contractor is independently responsible for the work [Clause 11 and 12 of the Agreement, Annexure-3, Page 17 of the Appeal Paperbook] He submitted that is a well settled position of law that Service tax liability cannot be fastened on the basis of assumptions and presumptions and the burden of proof to establish taxability is on the Revenue. In this regard, reliance is placed on the following cases: * Diamond Flush Doors (P) Ltd. v. Commissioner of CGST & Central Excise, Chennai - 2024 (6) TMI 847 - CESTAT Chennai. * Paramjit Singh v. The Commissioner, Customs& Central Excise, Tikrapara, Raipur - 2024 (1) TMI 86 - CESTAT New Delhi. In light of the same, the Appellant submits that the Department has not disc....
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....mar, Member (Technical)], had examined the issue. The Bench observed: "7. The question before us is whether there is a relationship of employer and an employee between the appellant, who is the manufacturer of flush doors and the persons who fix the doors at the buyers' 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 ....
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....tion not approved by the employer. They are required to adhere to the same specified times of work and rules that apply to the employers' permanent employees. (Control and Supervision Test) [See Shivnandan Sharma vs Punjab National Bank Ltd.[955 AIR 404, 1955 SCR (1)1427] 8. This is not an exhaustive 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 ex....