2016 (9) TMI 740 - AT - Service Tax

Manpower Recruitment and Supply Agency Services for the service rendered by them to the sugar factory which is harvesting of sugar cane, loading and unloading in the sugar factory - Held that - Since an identical issue has been decided by the Jurisdictional High Court in the case of Godavari Khore Cane Transport Co. Pvt. Ltd. 2015 (3) TMI 1170 - BOMBAY HIGH COURT holding that such service as rendered by the appellant herein are not liable to be taxed; respectfully following the same, we hold that the impugned order in the case in hand is unsustainable and liable to be set aside and we do so. - Decided in favor of assessee.

Summary

Issues Involved:
Demand of service tax liability for Manpower Recruitment and Supply Agency Services for services rendered to a sugar factory.

Analysis:

Issue 1: Demand of service tax liability for Manpower Recruitment and Supply Agency Services
The appeal was filed against an order dated 15.03.2012 demanding service tax liability from the appellant for services provided to a sugar factory, including harvesting of sugar cane, loading, and unloading. The appellant argued that the services provided did not fall under Manpower Recruitment and Supply Agency Services. The appellant's counsel referred to a similar case before the High Court, where it was held that services like those provided by the appellant were not taxable. The Tribunal noted the agreement between the sugar factory and the service provider for harvesting sugarcane, loading them onto vehicles, and delivering them to the factory site. Citing the High Court's decision, the Tribunal held that the services in question were not liable to be taxed. Consequently, the impugned order was deemed unsustainable and set aside, leading to the allowance of the appeal.

Conclusion:
The Tribunal ruled in favor of the appellant, setting aside the demand for service tax liability for the services provided to the sugar factory. The decision was based on the precedent set by a similar case before the High Court, which determined that such services were not taxable under the category of Manpower Recruitment and Supply Agency Services.