Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-18-10-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 18 October 2022
Facts –
- The Appellant, Metadian Mali, during an inquiry produced the copies of Bills raised to M/s Pino Bisazza Glass Pvt. Ltd., Kadi for providing Labour Contract Services. He rendered this service since 16.06.2005 without obtaining service tax registration though the turnover has exceeded Rs. 4 Lakhs during the period 16.06.2005 to 31.03.2006.
- A show cause notice had issued on the ground that the activity of the Appellant is covered under the definition of manpower recruitment agency.
- Aggrieve appellant filed an appeal
Issue –
- Whether activities carried by appellant are liable to Service Tax under the definition of Manpower Agency?
Order –
- The Tribunal has carefully gone through the relevant contract entered into by Appellant with M/s Pino Bisazza Glass Pvt. Ltd and find that M/s. Pino has entered into agreement with the appellant for packing and salvaging activities. The appellant was paid for carrying out such activities on per Kgs / Per Metric Ton basis. The workmen deployed by the appellant for carrying out such activities were under the supervision and control of the appellant.
- It is also noticed that over and above paying the amount for activities undertaken by the appellant on job contract basis, the said service receiver had not paid any specific price to the workmen deployed by the appellant.
- Since there is no specific mention about deployment of labour/work force, the services provided by the appellant should not fall under the taxable category of manpower recruitment or supply agency service. Further, the rate contract provided in the work order clearly indicates that the amount shall be paid at a fixed basis i.e. on per kgs /per metric ton basis. Since there is no specific mention about payment of reimbursement of wages and salaries to the workman, the services provided shall not fall under such taxable category of service.
- Hence the appeal is allowed.
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