TaxTMI 
TaxTMI 
2026 (3) TMI 1533
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....ransportation of tractors by road, under the category of Manpower Recruitment or Supply Agency Services Relevant Period April 2010 to Sept 2011 OIA CHD-EXCUS-001-APP-140- 2018-19 dated 06.07.2018 CHD-EXCUS-001-APP-241- 2018 dated 19.12.2018 OIO 24/ST/JC(P)C/CHD-I/2012-13 dated 29.11.2012 25/ST/JC(P)C/CHD-I/2012-13 dated 29.11.2012 SCN C.No. V(ST)SCN/JC(P)/Adj/CHD- I/65/11/4128 dated 21.10.2011 C.No. V(ST)SCN/JC(P)/Adj/CHD- I/66/11/4125 dated 21.10.2011 Demand of Service Tax Rs.17,98,864/- u/s 73 of the Finance Act, 1994 Rs.20,85,358/- u/s 73 of the Finance Act, 1994 Interest Not quantified, in terms of Section 75 of the Act Not quantified, in terms of Section 75 of the Act Penalty Not quantified, in terms of Sections 76 & 77 of the Act Not quantified, in terms of Sections 76 & 77 of the Act 1.2 Since the issue involved in these two appeals is identical, therefore, both the appeals are taken up together for discussion and decision. For the sake of convenience, facts of Appeal No. ST/61727/2018 are taken up. 2. Briefly stated facts of the present case are that the Appellant, M/s Kamaldeep Ente....
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.... transportation contract and not for supply of manpower. In this regard, she relies on the decision of the Tribunal in the case of Rajhans Metals Pvt Ltd and Shri Bhavik Hitesh Shah vs. CCE & ST, Rajkot - 2024 (9) TMI 929 CESTAT Ahmedabad. 4.3 She further submits that in order to fall, within the definition of 'Manpower Recruitment or Supply Agency Services' as under Section 65(68) of the Act, the assessee has to be a commercial concern engaged essentially in the supply of manpower. In this regard, she relies on the following decisions: * Commissioner of Service Tax vs. Arvind Mills Ltd - 2014 (35) STR 496 (Guj.) * Punj Lloyd Ltd vs. Commissioner of Service Tax - 2019 (22) GSTL 85 (Tri. Del.) 4.4 She further submits that in the present case, the Appellants are engaged in only the business of transportation of tractors and not any supply of manpower to their clients. 4.5 She further submits that it is a settled position of law that the amount charged for any service shall necessarily be towards consideration for the said service, which means, there has to be a nexus between the amount charged and the service provided and for a service to be classified unde....
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....s by road, even then they were supposed to get registered themselves under the said service, but they did not get themselves registered and therefore, the Appellants have contravened the provision of Section 70 of the Finance Act, 1994 and accordingly, are liable for penalty under Section 77 of the Act. 6. We have considered the submissions made by both the parties and perused the material on record as well as the case-laws relied upon by the Appellants. We find that the only issue involved in the present case is whether the Appellants are liable to service tax on transportation of tractors by road under the category of 'Manpower Recruitment or Supply Agency Services'. We find that this issue is no more res integra and has been settled by this Tribunal in Appellants' own case titled as M/s Syal & Associates and M/s Kamaldeep Enterprises vs. CCE & ST, Chandigarh - 2023 (4) TMI 715 CESTAT Chandigarh. In the said case, the Tribunal, after considering all the arguments of the parties, has held as under: "6.1 On going through the contract, we find that a consideration for the job undertaken by the appellants is on the basis of per kilometer. Letter dated 02.01.2004 written b....
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....---------------" 6.3 Clear meaning of the above is that even where the wages of the workers or the employees supplied by the agency are paid by the agency, the liability to pay the service tax would be under said agency and not on the clients. In other words, the Circular clarifies that mere payment of wages by the manpower recruitment or supply agency does not take away their status. However, as far as the facts of the present case are concerned, there are no reasons for applying the said circular; the terms of the contract are very clear and the appellants have rendered the job assigned by Punjab Tractors Ltd and did not at all supply any manpower. 6.4 We find that the Tribunal in the case of Talala Taluka Sahakari Khand Udyog Mandali Limited & others vs. CCE & ST, Bhavnagar reported in 2022 (12) TMI 468 - CESTAT AHMEDABAD has observed as under : "5. We have carefully considered the submissions made by both the sides and perused the record. We find that the fact is not in dispute that the appellants have no arrangement for supply of manpower for harvesting and transportation of sugarcane for supply to sugar mills. It is also the fact that charges were c....